The Fraction of an Increase in Income That Is Saved

question 27

Multiple Choice

The fraction of an increase in income that is saved is referred to as the

• A)marginal propensity to save
• B)average propensity to save
• C)marginal propensity to consume
• D)average propensity to consume
• E)saving-consumption ratio (i.e.,saving divided by consumption spending)

---

Definitions:

Income

The financial gain received by an individual or entity, typically measured over a certain period of time, from work or investments.

Graphical Excellence

The effective communication of complex quantitative ideas through clear, precise, and efficient graphics.

Ideas

Concepts, thoughts, or suggestions.

Time

A continuous measure in which events can be ordered from the past through the present and into the future, often used as an independent variable in studies.