Marginal Propensity to Save Is Equal to the Change in ____

question 40

Multiple Choice

Marginal propensity to save is equal to the change in ____ divided by the change in ____.

• A)​consumption spending; total income
• B)​saving; total income
• C)​saving; disposable income
• D)​consumption spending; disposable income

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Definitions:

Flexible Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's variable costs, allowing flexibility in pricing.

Pricing Strategies

Tactics used by companies to determine the best price points for their products or services in order to maximize profits and market share.

Rigid Cost-plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of producing a product to determine its selling price, without flexibility for market changes.

Export Markets

Countries or regions where goods and services are sold abroad, outside the producing country's borders.