The Smaller the Marginal Propensity to Save,other Things Constant,_____

question 146

Multiple Choice

The smaller the marginal propensity to save,other things constant,_____.

• A)the smaller the marginal propensity to consume
• B)the larger the multiplier
• C)the smaller the multiplier
• D)the flatter the consumption function
• E)the steeper the saving function

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Definitions:

Producing Departments

Sections within a manufacturing facility where raw materials are processed or assembled into finished products.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Cafeteria

A type of food service location within an establishment where customers serve themselves from a variety of options.

Transfer Prices

Prices charged in the sale or transfer of goods and services between departments or divisions within the same company, often used for accounting or tax purposes.