The Marginal Propensity to Save (MPS) Is

question 187

Multiple Choice

The marginal propensity to save (MPS) is

• A) the rate at which real savings changes over time.
• B) the percentage of real disposable income saved.
• C) the difference between the amounts of real disposable income consumed and saved.
• D) the percentage of an additional dollar of real disposable income that will go toward additional real savings.

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Definitions:

Knowing

The state or condition of having information, understanding, or familiarity acquired through experience or education.

Buying Power

Buying power refers to the ability of individuals or entities to purchase goods and services, often influenced by income, credit availability, and economic conditions.

Diversity Competency

The ability to understand, respect, and value the differences among individuals, contributing to an inclusive and effective working environment.

Chubb's Business

Chubb's business focuses on providing insurance products and services to individuals, families, and businesses.