The Marginal Propensity to Save Is Equal To

question 102

Multiple Choice

The marginal propensity to save is equal to:

• A) 1 - MPC.
• B) 1 - multiplier.
• C) 1 ÷ MPC.
• D) (Total savings)÷ (total disposable income).

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Definitions:

Note Payable

A written promise to pay a specific amount of money, usually with interest, by a certain date to a designated party.

Accrued Interest

Interest that has been earned but not yet paid, recognized as an asset or liability prior to the exchange of cash.

Social Security

A government program that provides financial assistance to individuals during retirement, disability, or upon the death of a breadwinner.

Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.