-Using the Data from the Above Table,the Marginal Propensity to

question 77

Multiple Choice

$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Disposable } \\\text { income } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Consumption } \\\text { expenditure (dollars) }\end{array} \\\hline 100 & 225 \\\hline 200 & 300 \\\hline 300 & 375 \\\hline 400 & 450 \\\hline 500 & 525 \\\hline 600 & 600 \\\hline\end{array}$$
-Using the data from the above table,the marginal propensity to save is

• A) falling as disposable income is rising.
• B) 0 when disposable income is $600.
• C) constant at 0.25.
• D) constant at 0.75.

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Definitions:

Known Liability

Obligations or debts that have been incurred and are measurable with a high degree of certainty.

Vacation Benefits

Employee benefits that provide paid or unpaid time off from work for holidays, vacations, and personal time.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its interest expense to its earnings before interest and taxes.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, typically evident in the form of interest payments on loans, bonds, or credit lines.