One Reason to Keep Projections in Perspective Is

question 29

Multiple Choice

One reason to keep projections in perspective is

• A) long histories.
• B) fluctuating markets.
• C) certain environments.
• D) both a and b

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Definitions:

APC

The acronym for Average Propensity to Consume, which measures the fraction of income that households spend on goods and services rather than saving.

Disposable Income

The cash pile households can utilize for their spending and savings needs after income taxes are handled.

MPC

Marginal Propensity to Consume, which represents the ratio of change in consumer spending to a change in household income.

MPS

The marginal propensity to save, which is the proportion of an increase in income that is saved rather than spent on consumption.