If Real Disposable Income Increases, the Average Propensity to Save

question 96

Multiple Choice

If real disposable income increases, the average propensity to save will

• A) initially increase, and then decrease.
• B) remain constant.
• C) increase.
• D) decrease.

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Definitions:

Self-direction

Self-direction involves individuals taking initiative and responsibility for their actions and learning, guiding themselves towards their goals and personal growth.

Employee Involvement

This concept refers to strategies and practices that allow employees to contribute ideas, suggestions, and feedback concerning business operations, which can lead to improved performance and job satisfaction.

Modified Contingency

A concept in management where strategies are adjusted based on the situational variables and contexts involved.

Closed Systems

Refers to systems that are not influenced by or do not interact with their environment.