Exhibit 9-9 -The Larger the Marginal Propensity to Save,other Things Constant

question 97

Multiple Choice

Exhibit 9-9
-The larger the marginal propensity to save,other things constant,

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

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Definitions:

Risk-Adjusted Return

This is a measure of how much risk is involved in generating a security's or portfolio's return, helping investors to compare the performance of different investments on a risk-adjusted basis.

Total Risk

The overall uncertainty associated with an investment, combining both systemic and idiosyncratic risks.

Long Position

An investment strategy where an investor buys securities with the expectation that their price will rise, aiming to sell them at a higher price in the future.

Maturity

The final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.