The Sum of the Marginal Propensity to Consume and the Marginal

question 185

Multiple Choice

The sum of the marginal propensity to consume and the marginal propensity to save is always equal to

• A)zero.
• B)0.5.
• C)1.
• D)100.

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Definitions:

Security Income

Usually refers to income derived from investments, such as dividends or interest, but can also refer to guaranteed income sources like pensions or social security benefits.

Straight Commission Plan

A compensation structure where an employee's earnings are derived entirely from commissions made from the sales they generate.

Percentage Commission

A method of compensation where an employee or agent is paid a percentage of the sales they generate or the deals they close.

Intrinsic Rewards

The personal satisfaction and enjoyment derived from completing a task or achieving a goal, independent of external rewards or recognition.