Recursive Relationships Only Exist for One-To-One Relationships

question 94

True/False

Recursive relationships only exist for one-to-one relationships.

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Definitions:

APC

Average Propensity to Consume, the fraction of income that households spend on consumption as opposed to saving.

MPS

An acronym that can stand for multiple financial and economic terms, such as Marginal Propensity to Save, which indicates the fraction of additional income that a household saves.

45-Degree Line

In economics, a line on a graph that shows where the value of the goods and services produced in an economy equals the total income earned in that same economy.

Disposable Income

Income that is available for saving and spending after income taxes have been deducted.