The Marginal Propensity to Save Is Defined as

question 206

Multiple Choice

The marginal propensity to save is defined as

• A)saving divided by disposable income.
• B)disposable income divided by saving.
• C)the change in saving divided by the change in disposable income.
• D)the change in disposable income divided by the change in saving.

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Definitions:

Limited Liability

A legal structure that limits the amount of financial risk and liability to the amount a person has invested in a company.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them certain rights and potential financial benefits based on the company's performance.

Corporate Form of Organization

A legal structure for a business recognized as a separate legal entity, with owners (shareholders) who have limited liability.

Government Regulation

The laws, rules, and guidelines established by governmental bodies intended to control or manage specific activities or industries.