Solved

When the Average Propensity to Save (APS) Is 0

Question 25

Multiple Choice

When the average propensity to save (APS) is 0.25, then this means


A) people are spending 25 percent of their disposable income.
B) people are spending 75 percent of their disposable income.
C) people are saving $0.25 of the last dollar earned.
D) people are spending 40 percent of their disposable income and investing the remaining 60 percent.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q20: The consumption function relates<br>A) a household's consumption

Q21: If the MPC is 0.75, then the

Q22: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -In the above

Q23: Along the 45° reference line<br>A) consumption expenditures

Q24: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" Note: Amounts in

Q26: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the

Q27: Ignoring the government and foreign sectors, equilibrium

Q28: The consumption function shows<br>A) a positive relationship

Q29: Distinguish between saving and savings. How does

Q30: If consumption is $650 when real disposable