The Inverse of the Slope of the Consumption Function Equals

question 103

True/False

The inverse of the slope of the consumption function equals the marginal propensity to save.

---

Definitions:

Temporary Account

An account that is used to collect balances over an accounting period and is reset to zero at the end of the period, such as revenue and expense accounts.

Advertising Expense

Costs incurred by a business to promote its products or services.

Accounts Payable

Money owed by a business to its suppliers or creditors for products or services received.

Income Statement Accounts

Categories within an income statement that record different types of revenue, expenses, gains, and losses, affecting the net income of a business.