-Refer to the Above Figure

question 119

Multiple Choice

-Refer to the above figure. The marginal propensity to consume and the marginal propensity to save

• A) are 0.90 and 0.10, respectively.
• B) are 0.83 and 0.17, respectively.
• C) are 0.75 and 0.25, respectively.
• D) depend on the level of income.

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Definitions:

Appreciated

The increased value of an asset or currency over time, often due to market or economic factors.

Return on Investment

A ratio that measures the gain or loss generated on an investment relative to the amount of money invested.

Pegged Exchange Rate

A fixed exchange rate system in which a currency's value is fixed against the value of another currency or a basket of other currencies.

Chinese Yuan

The official currency of the People's Republic of China, used as a medium of exchange in mainland China.