If the Average Propensity to Save (APS)is 0

question 301

Multiple Choice

If the average propensity to save (APS) is 0.60, then this means

• A)people are saving 60 percent of their disposable income.
• B)people are spending 60 percent of their disposable income.
• C)the marginal tax rate is 60.
• D)the government spends 60 percent of its revenues.

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Definitions:

Economic Topics

Economic Topics are issues or subjects related to the production, distribution, and consumption of goods and services.

Redistribution of Income

Government policies or mechanisms aimed at reducing income inequality by reallocating wealth and income from richer to poorer segments of society.

Taxpayers

Individuals or entities that are obligated to pay taxes to federal, state, or local governments.

Trade Barriers

Measures introduced by governments to restrict or control international trade, such as tariffs, quotas, and import bans.