The Table Given Below Shows the Values of Different Components

question 126

Multiple Choice

The table given below shows the values of different components of aggregate expenditure of an economy.The marginal propensity to save (MPS) equals _____.​ ​
Table 9.2
​

• A)0.80 or 4/5
• B)0.60 or 3/5
• C)0.40 or 2/5
• D)0.10 or 1/10
• E)0.20 or 1/5​

Assess the role of insurance and risk management in personal finance and investments.

Understand the impact of portfolio changes on expected return and risk.

Explain the efficient markets hypothesis and its implications for investment strategy.

Graph utility functions and derive implications for individual risk preferences and investment choices.

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Definitions:

Imposed Costs

Costs that are not chosen but are forced on a party, often by external factors or requirements such as government regulations, taxes, or fines.

Weight On Future

The importance or impact that future events or expectations have on current decision-making or attitudes.

Self-control Problems

Difficulties individuals face in resisting temptation or impulsivity, often impacting long-term goals for instant gratification.

Poor Information

Refers to scenarios where the data available for decision making is inadequate, inaccurate, or misleading.