Time-series studies of consumption reveal that
A)the long-term saving ratio is rising.
B)the long-term saving ratio is falling.
C)the long-term saving ratio is constant but the marginal propensity to consume is falling.
D)both the long-term marginal propensity to save and the long-term saving ratio are constant.

Question

Quizplus · Accepted Answer

Time-series studies often show that both the long-term marginal propensity to save and the long-term saving ratio remain relatively stable over time, indicating consistent saving behavior.

Time-Series Studies of Consumption Reveal That