The Average Propensity to Save Is

question 16

Multiple Choice

The average propensity to save is

• A) real consumption/real disposable income.
• B) real saving/real disposable income.
• C) change in real consumption/change in real disposable income.
• D) change in real saving/change in real disposable income.

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Definitions:

Liability Insurance

A type of insurance that protects an individual or business from the risk of being sued and held legally liable for something such as malpractice, injury, or negligence.

Step-Variable Cost

A cost that remains fixed for a certain level of production or activity, but jumps to a higher amount once a certain threshold is exceeded.

Helpline

A service providing information and support to people in need, typically available via telephone or the internet.

Volume

Refers to the quantity of an item produced or sold over a specific period of time.