Other Things Constant, How Would a Larger Marginal Propensity to Save

question 60

Multiple Choice

Other things constant, how would a larger marginal propensity to save affect the saving function?  

• A) The saving function would remain the same. 
• B) The saving function would be negative. 
• C) The saving function would be steeper. 
• D) The saving function would be flatter.

---

Definitions:

Managerial Accounting

The practice of analyzing, interpreting, and presenting financial information for internal management use in planning, decision-making, and operational control.

Management

The process of dealing with or controlling things or people, often within the context of a business or organization.

Proprietorships

Business entities owned by a single individual, who has full control over operations and takes on the liabilities of the business personally.

Services

Activities that provide value to customers without producing tangible goods, often characterized by expertise, advice, or labor.