The Smaller the Marginal Propensity to Save,other Things Constant,_____

question 136

Multiple Choice

The smaller the marginal propensity to save,other things constant,_____.

• A)the smaller the marginal propensity to consume
• B)the smaller the multiplier
• C)the flatter the consumption function
• D)the steeper the consumption function
• E)the steeper the saving function

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Schedule of Cost of Goods Manufactured

A detailed report showing the total production costs incurred to produce goods in a specific accounting period.

Total Manufacturing Cost

The aggregate cost of producing goods, including direct labor, direct materials, and manufacturing overhead expenses.

Prime Costs

The direct costs directly attributable to the manufacture of goods, including direct materials and direct labor.