-Refer to the above diagram.The marginal propensity to save is:
A) CD/EF.
B) CB/CF.
C) CB/AF.
D) EF/CB.

Name: -Refer to the above diagram.The marginal propensity to save is: A) CD/EF. B) CB/CF. C) CB/AF. D) EF/CB.
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Question

-Refer to the above diagram.The marginal propensity to save is:
A) CD/EF. 
B) CB/CF. 
C) CB/AF. 
D) EF/CB.

Quizplus · Accepted Answer

The marginal propensity to save is the change in saving divided by the change in income. In the diagram, the change in saving is CD and the change in income is EF. Therefore, the marginal propensity to save is CD/EF.

-Refer to the Above Diagram