The Marginal Propensity to Save Plus the Marginal Propensity to Consume

question 23

Multiple Choice

The marginal propensity to save plus the marginal propensity to consume must equal:

• A) zero.
• B) one.
• C) income.
• D) savings.

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Definitions:

Raw Materials

Basic materials and substances used in the initial stages of production or manufacturing.

Month

A unit of time, typically comprising 28 to 31 days, used as a measure for organizing calendar time.

Underapplied Overhead

A situation in cost accounting where the allocated manufacturing overhead cost is less than the actual overhead incurred.

Manufacturing Overhead

All indirect costs associated with manufacturing, including maintenance, utilities, and indirect labor.