Author Question: The marginal propensity to save is defined as A) the change in saving divided by the change in ... (Read 108 times)

Caiter2013 · **on:** Jun 29, 2018

The marginal propensity to save is defined as

A) the change in saving divided by the change in disposable income.
B) disposable income divided by saving.
C) the change in disposable income divided by the change in saving.
D) saving divided by disposable income.

Question 2

Refer to Figure 21-4. Which of the following is consistent with the graph depicted?

A) an increase in household income
B) an increase in tax revenues collected by the government
C) an increase in transfer payments to households
D) an increase in the proportion of income after net taxes used for consumption