The marginal propensity to save refers to the
A)additional saving that occurs out of an additional dollar of income.
B)additional saving that occurs out of an additional dollar of investment.
C)total saving divided by a change in income.
D)change in saving divided by total income.
E)additional saving that occurs over time.

Question

Quizplus · Accepted Answer

The marginal propensity to save refers to the additional saving that occurs out of an additional dollar of income. It is calculated as the change in saving divided by the change in income.

The Marginal Propensity to Save Refers to the