Mercantilism Is

question 19

Multiple Choice

Mercantilism is

• A) the recognition by the state that all individuals have economic rights.
• B) the belief in a complete free-market economy.
• C) a government policy t hat limits foreign trade and emphasizes the accumulation of gold and silver.
• D) the political doctrine that only people who produce economic wealth may vote.
• E) another name for capitalism.

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Definitions:

Saving

The act of setting aside a portion of current income for future use, or the portion of income not spent on current expenditures.

MPC (Marginal Propensity to Consume)

The proportion of additional income that is spent on consumption.

Saving

The act of setting aside money for future use instead of spending it immediately.

Disposable Income

The capital households have to spend and save once income taxes have been cleared.