The Marginal Propensity to Save Is Defined as

question 206

Multiple Choice

The marginal propensity to save is defined as

• A)saving divided by disposable income.
• B)disposable income divided by saving.
• C)the change in saving divided by the change in disposable income.
• D)the change in disposable income divided by the change in saving.

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Definitions:

Firm

A business or company engaged in commercial, professional, or industrial activities.

Maximum Profit

The highest possible financial gain a business can achieve in a given period, optimized through revenue and cost management.

Market Price

The current price at which an asset or service can be bought or sold in a given market, determined by supply and demand dynamics.

Firm

A business or company that sells goods or services in an attempt to earn a profit.