The Disposable Income (DI) and Consumption (C) Schedules Are for a Private

question 54

Multiple Choice

The disposable income (DI) and consumption (C) schedules are for a private, closed economy. All figures are in billions of dollars. Refer to the data above. At the $320 billion level of disposable income, the average propensity to save is:

• A) .015
• B) .075
• C) .335
• D) .925

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Definitions:

Cooling Magma

The process of molten rock solidifying as it cools, forming igneous rock.

Igneous Rock

Igneous rock forms from the cooling and solidification of magma or lava and can be found at or beneath the surface of the Earth.

Weathering

The process by which rocks and minerals break down into smaller pieces by physical, chemical, or biological means, leading to the formation of soil and sediments.

Bedrock

The solid rock underlying loose deposits such as soil or alluvium, often exposed at the Earth's surface or underlying the soil layer.