The Marginal Propensity to Save Is Calculated as

question 72

Multiple Choice

The marginal propensity to save is calculated as

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

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Definitions:

Collectibles

Items of personal property that are considered valuable due to rarity, demand, or historical significance, potentially subject to special capital gains tax rates upon sale.

Capital Gain Transactions

Deals involving the sale of an asset, such as stocks, bonds, or real estate, where the sale price exceeds the purchase price, resulting in income that can be taxed at preferential rates.

Form 1099-B

A form used by brokers and barter exchanges to report proceeds from transactions to the taxpayer and the IRS.

Form 8949

A tax form used by the IRS to report sales and other dispositions of capital assets.