If the Average Propensity to Save (APS)is 0

question 301

Multiple Choice

If the average propensity to save (APS) is 0.60, then this means

• A)people are saving 60 percent of their disposable income.
• B)people are spending 60 percent of their disposable income.
• C)the marginal tax rate is 60.
• D)the government spends 60 percent of its revenues.

Analyze the impact of digital communication technologies on personal and professional life.

Recognize the role of electromagnetic waves in data transmission.

Evaluate the benefits and downsides of smartphone usage in daily life.

Understand the requirement and flexibility of mobile service contracts.

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Definitions:

Merchandise Inventory

Goods that a retailer, wholesaler, or distributor holds for the purpose of resale.

Monthly Depreciation

The allocation of an asset's cost over its useful life on a monthly basis, reflecting its consumption or wear and tear.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping manage liquidity and cash reserves.

Direct Labor Budget

An estimate of the total amount of labor cost that will be needed to produce the products a company plans to manufacture in a specific period.