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How does the marginal propensity to save (MPS) differ from the average propensity to save (APS)?
Why is it important for policymakers to understand the average and marginal propensities to consume and save?
How does disposable income influence the average propensity to consume?
In a recession, why might a government be interested in the marginal propensity to consume of its citizens?
Which of the following best describes the difference between average propensity to consume (APC) and marginal propensity to consume (MPC)?
How might a high marginal propensity to consume affect the effectiveness of a government stimulus package?
What is the likely effect on the average propensity to consume if disposable income increases significantly?
A household saves \$15,000 out of a total disposable income of \$75,000. What is their average propensity to save?
What role does disposable income play in determining a household's consumption and savings?
If the marginal propensity to save is 0.2, how much additional savings will occur if income increases by \$500?