The Smaller the Marginal Propensity to Save,other Things Constant,_____

question 136

Multiple Choice

The smaller the marginal propensity to save,other things constant,_____.

• A)the smaller the marginal propensity to consume
• B)the smaller the multiplier
• C)the flatter the consumption function
• D)the steeper the consumption function
• E)the steeper the saving function

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Definitions:

Interest

The cost of borrowing money or the payment received for lending money, often expressed as a percentage of the principal.

Savings

Money that is set aside for future use rather than being spent immediately, often with the aim of achieving longer-term financial goals.

Retire

In finance, it often refers to the paying off or buying back of debt or securities, implying the removal of these items from the financial markets.

Invested

Capital that has been put into a project, company, or various assets to earn profits or achieve other financial goals.