When the average propensity to save (APS) is 0.20, then this means
A) people are spending 60 percent of their disposable income and investing the remaining 20 percent.
B) people are spending 20 percent of their disposable income.
C) people are spending 80 percent of their disposable income.
D) people are saving $0.20 of the last dollar earned.
C
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Which of the following statements about scarcity is true?
A) Scarcity is not a problem for the wealthy. B) Scarcity is only a problem when a country has too large a population. C) Scarcity refers to the situation in which unlimited wants exceed limited resources. D) Scarcity only arises when there is a wide disparity in income distribution.
Which of the following is a lagging indicator?
a. Outstanding commercial loans. b. Duration of unemployment. c. Prime rate. d. All of these.