The Marginal Propensity to Save Is

question 6

Multiple Choice

The marginal propensity to save is:

• A) the change in saving divided by the change in disposable income.
• B) the change in disposable income divided by the change in saving.
• C) saving divided by disposable income.
• D) disposable income divided by saving.

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Definitions:

Empirical Rule

A statistical rule stating that for a normal distribution, about 68% of data falls within one standard deviation of the mean, 95% within two, and 99.7% within three standard deviations.

Mound-Shaped

Refers to a symmetrical, bell-shaped curve often associated with the normal distribution in statistics.

Standard Deviation

An indicator that quantifies the spread or variability among a collection of numbers, showing the extent to which these numbers differ from their average.

Mean

The mathematical mean of a collection of numbers, obtained by summing them up and then dividing by the total count of the numbers.