The MPS Equals the Ratio of

question 84

Multiple Choice

The MPS equals the ratio of

• A) saving to real GDP.
• B) the change in saving to the change in consumption expenditure.
• C) saving to consumption expenditure.
• D) None of the above answers is correct.

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Definitions:

Productivity Growth

The rate at which a company or economy can produce more goods and services with the same amount of labor, capital, energy, and materials, often seen as a key driver of economic growth.

Savings Rate

The proportion of disposable income that is saved by households rather than spent on goods or services.

Mass Production

The manufacture of large quantities of standardized products, often utilizing assembly lines or automated technology.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, leading to significant technological, socioeconomic, and cultural changes.