The fraction of an increase in income that is saved is referred to as the
A)marginal propensity to save
B)average propensity to save
C)marginal propensity to consume
D)average propensity to consume
E)saving-consumption ratio (i.e.,saving divided by consumption spending)

Question

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The fraction of an increase in income that is saved is referred to as the marginal propensity to save.

The Fraction of an Increase in Income That Is Saved