When Jack's Income Increases by $1,000,he Spends an Additional $850

question 167

True/False

When Jack's income increases by $1,000,he spends an additional $850 dollars.This implies that his marginal propensity to save is 0.85.

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Definitions:

Passive Voice

A grammatical voice where the subject of the sentence is acted upon by the verb, oftentimes shifting focus from the doer of the action to the receiver.

Business Writing

A style of writing that is clear, concise, and seeks to convey information or ideas in a professional setting.

Parallel Construction

The use of the same pattern of words to show that two or more ideas have the same level of importance.

Similar Structures

Architectural or organizational elements that share comparable features or organization.