The Smaller the Marginal Propensity to Consume

question 19

Multiple Choice

The smaller the marginal propensity to consume,

• A) the greater of the multiplier.
• B) the lower the value of the multiplier.
• C) the greater the initial change in real GDP.
• D) the greater the initial change in aggregate expenditures.

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Definitions:

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a pervasive pattern of preoccupation with orderliness, perfectionism, and mental and interpersonal control, at the expense of flexibility, openness, and efficiency.

Perfectionistic

A personality trait characterized by striving for flawlessness and setting excessively high performance standards.

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a preoccupation with orderliness, perfectionism, and control, at the expense of flexibility and efficiency.

Obsessions

Uncontrollable, persistent thoughts, images, ideas, or impulses that an individual feels intrude on his or her consciousness and that cause significant anxiety or distress.