If Real Disposable Income Increases, the Average Propensity to Save

question 96

Multiple Choice

If real disposable income increases, the average propensity to save will

• A) initially increase, and then decrease.
• B) remain constant.
• C) increase.
• D) decrease.

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Definitions:

Standard of Living

This is a measure of the economic prosperity and quality of life in a country or region, often assessed by income levels, access to goods and services, and other socioeconomic factors.

Fiscal Burdens

The financial obligations, such as taxes and debt payments, that a government must bear.

Skills-based Immigration

This is a type of immigration policy that prioritizes the entry of individuals into a country based on their job skills, professional experience, and the ability to contribute to the labor market.

Local Economy

The economic system and activities that are confined to a specific geographic area or community.