If One Had to Decide, Without Any Other Information, Whether

question 40

Short Answer

If one had to decide, without any other information, whether to use a multiple-choice format, a matching format, or a true-false format, which format would be the best to select?

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Definitions:

APS

Assumes "APS" refers to "Average Propensity to Save," which is the proportion of total income or output that is saved rather than spent on consumption.

Induced Consumption

Refers to the portion of consumer spending that increases or decreases in response to changes in income.

Disposable Income

The pot of funds households have at their disposal for saving and spending, post-income tax.

MPC

refers to the Marginal Propensity to Consume, which is the fraction of additional income that a household spends on consumption.