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The Marginal Propensity to Save Is Equal to the Change

question 173

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The marginal propensity to save is equal to the change in consumption divided by the change in income.


Definitions:

Developed Countries

Nations with advanced economic systems, higher standards of living, and well-established infrastructures, often characterized by high Gross Domestic Product (GDP) per capita.

Balance-of-Payment Deficits

A situation where the total amount of money a country spends on foreign trade is greater than the amount it earns from such trade.

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