A Change in the Amount Saved Due to a Change

question 123

Multiple Choice

A change in the amount saved due to a change in income is represented by a:

• A) Shift of the entire saving schedule
• B) Movement along the saving schedule
• C) Change in the marginal propensity to save
• D) Change in the marginal propensity to consume

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, also known as un-diversifiable risk or market risk.

Low-beta Stocks

Stocks with a beta coefficient lower than one, indicating they are less volatile than the market and tend to offer more stable returns.

High-beta Stocks

Stocks that are more volatile than the market average, possessing a beta value greater than 1, indicating they have a higher risk and potential return.

Systematic Risk

A type of risk that affects all securities in a market or market segment, unable to be lessened through diversification.