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Ex Ante Consumption

The propensit...

Question

The propensity to save means

A

Ratio of saving to income

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B

The tendency to save more

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C

The tendency to save less

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D

None of these

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Solution

The correct option is A
Ratio of saving to income

The marginal propensity to save gives the ratio of total additional planned savings in an economy to the total additional income of the economy.

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