Assume a Simple Model Without Any Government

question 5

Multiple Choice

Assume a simple model without any government.If an increase in autonomous investment of 40 leads to an increase in consumption of 160, then the marginal propensity to save is

• A)0)10
• B)0)20
• C)0)25
• D)0)40
• E)0)80

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Definitions:

Gradual Changes

Gradual Changes refer to slow and incremental alterations or developments over time in a system, organism, or process.

Abrupt Changes

Sudden and unexpected shifts or transitions, often creating a stark contrast to previous conditions or expectations.

Developmental Changes

Developmental changes refer to the transformation or evolution in physical, cognitive, emotional, and social capabilities and functions over the course of a person's life.

Inherited Personality Traits

Characteristics and behaviors that are passed down from parents to offspring through genetics, influencing an individual's disposition and mannerisms.