The Marginal Propensity to Save (MPS)is Computed as the Change

question 218

Multiple Choice

The marginal propensity to save (MPS) is computed as the change in:

• A)savings divided by the change in saving.
• B)savings divided by the change in disposable personal income.
• C)saving divided by the change in GDP.
• D)None of these.

Recognize the importance and process of maintaining a corporation's compliance with legal requirements.

Distinguish between broadly held and closely held corporations and understand their characteristics.

Analyze the implications of corporate dissolution and the concept of corporate perseverance.

Understand the impact of tariffs and quotas on domestic prices and production.

---

Definitions:

Brand Loyalty

The tendency of consumers to continuously purchase products from the same brand due to satisfaction, preference, or perceived superiority.

Elastic

A description of a situation where the demand or supply for a good or service significantly changes in response to a change in price.

Inelastic

Describes a situation where the demand or supply for a product does not change significantly when the price of the product changes.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage.