-How Much Is the Marginal Propensity to Save When Disposable

question 47

Multiple Choice

$$\begin{array}{l}\text { Disposable Income Consumption }\\\begin{array} { c c } 0 & \$ 1 \text { trillion } \\\$ 1 \text { trillion } & 1.5 \text { trillion } \\2 \text { trillion } & 2.0 \text { trillion } \\3 \text { trillion } & 2.5 \text { trillion } \\4 \text { trillion } & 3.0 \text { trillion }\end{array}\end{array}$$
-How much is the marginal propensity to save when disposable income rises from $3 trillion to $4 trillion?

• A)0
• B).25
• C).5
• D).75
• E)1.0

---

Definitions:

Temporal Method

An exchange rate conversion method that uses specific rates depending upon the timing of the original acquisition of assets and liabilities.

Total Assets

The sum of all resources owned by a company, including cash, investments, property, and other financial assets reflected on the balance sheet.

Cumulative Translation Gain

The total gain or loss resulting from the translation of foreign currencies into the functional currency over a period of time.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as a single entity.