The Rate at Which a Consumer Is Willing to Give

question 44

Multiple Choice

The rate at which a consumer is willing to give up consumption in one period for additional consumption in another is known as ________.

• A)the marginal propensity to save
• B)the marginal propensity to consume
• C)the marginal rate of substitution
• D)the average propensity to consume

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Definitions:

Cash Payments

Monetary transactions where cash is used to settle the amount owed for purchases or expenses.

Note Payable

A written promise to pay a specified amount of money, usually with interest, by a certain date to the holder of the note.

Journal Entry

A record of the transactions that occur within a company, entered into the accounting ledger reflecting debits and credits in order to maintain accurate financial statements.

Chart Of Accounts

An organized list of all accounts in the general ledger of a company, categorizing assets, liabilities, equity, revenues, and expenses.