The Reciprocal of the Marginal Propensity to Save Is Called

question 75

Multiple Choice

The reciprocal of the marginal propensity to save is called the

• A) multiplier.
• B) propensity to consume.
• C) saving function.
• D) 45-degree line.
• E) interest rate.

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Definitions:

Quintile Distribution

Quintile distribution is a method of dividing a population into five equal groups or quintiles, based on variables such as income or wealth, to analyze economic inequality.

Income Receivers

Individuals or entities that earn income through various means such as employment, investments, or ownership of assets.

Gini Ratios

A gauge of how evenly income is distributed across a population, with a scale from 0 indicating absolute equality to 1 showing total inequality.

Income Inequality

A measure of the uneven distribution of income within a population.