A Change in the Marginal Propensity to Save Can Be

question 107

Multiple Choice

A change in the marginal propensity to save can be graphically represented by:

• A)a movement along the investment function.
• B)a movement along the saving function.
• C)a parallel shift of the consumption function.
• D)a parallel shift of the saving function.
• E)a change in the slope of the saving function.

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Definitions:

Nominal Exchange Rate

The rate at which currencies are traded in the foreign exchange market, not considering differences in price levels between countries.

Domestic Price

The price of a good or service within a specific country, distinct from its price in international markets.

Depreciate

The process by which an asset's value decreases over time due to use, wear and tear, or obsolescence.

Euros/Dollar

The exchange rate between the euro and the U.S. dollar, indicating how much one euro is worth in U.S. dollars or vice versa.