When income increases, not all of the additional income is spent. The increase i
ID: 1211362 • Letter: W
Question
When income increases, not all of the additional income is spent. The increase in saving that occurs expressed as % increase in income is known as ...
the saving rate
savings
the marginal propensity to consume
the marginal propensity to save
The multiplier will get greater as U.S. households....[choose two responses]
spend a smaller portion of any change in income overseas
devote a larger portion of any change in income to saving
have less of any additional income taxed away
the amount of idle resources in the nation becomes smaller, giving he economy less "room to grow".
Question 4
Expansionary fiscal policy....[select three]
is more suitable in a situation where actual GDP is greater than potential GDP.
is more suitable in a situation where actual GDP is less than potential GDP.
combats inflation
combats unemployment
includes cutting $G and/or raising t
includes cutting t and/or raising $G
the saving rate
savings
the marginal propensity to consume
the marginal propensity to save
Explanation / Answer
Marginal Propensity to save is the percentage of amount saved for every 1 dollar increase in income.
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