In the Calculation of the Savings Ratio, Savings Is Defined

question 25

Multiple Choice

In the calculation of the savings ratio, savings is defined as:

• A) the amount left over after deducting all expenditures from income.
• B) the balance of an individual's funds on deposit at a bank at the end of a period.
• C) the amount left over after deducting expenditure from income after we add back items that may be regarded as an investment.
• D) both a and b

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Definitions:

Normally Distributed

A type of distribution in which data points are symmetrically distributed around the mean, forming a bell-shaped curve.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of values from the mean.

Finite Population Correction Factor

A factor applied in sample size formulae to adjust for the effect of sampling without replacement from a finite population.

Mean Salary

The average amount of money earned by employees in a specific job, industry, or region, calculated by summing all salaries and dividing by the number of employees.