In the Saving Function, Autonomous Saving Is

question 155

Multiple Choice

In the saving function, autonomous saving is

• A) -a + (1 - c)(Y - T).
• B) (1 - c)Y.
• C) -a.
• D) -Y - T.

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Definitions:

Real Rate of Return

The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects.

Dividends

Profits disbursed by a business to its equity shareholders, usually generated from the company's financial gains.

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Standard Deviation

A statistical measure that indicates the variability or volatility of a set of data points.