If the Marginal Propensity to Consume Is 0

question 8

Multiple Choice

If the marginal propensity to consume is 0.75,then the multiplier equals

• A)1/(1 - 0.25).
• B)1/0.75.
• C)1/(1 - 0.75).
• D)0.75.

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Definitions:

Id

The unconscious system of the personality, which contains the life and death instincts and operates on the pleasure principle; source of the libido.

Iceberg Metaphor

A psychological model used to describe the conscious mind as the tip of the iceberg visible above water, with the unconscious mind as the larger mass below water.

Consciousness Levels

Refers to the varying degrees of awareness individuals have of themselves and the environment around them.

Ego

In Freud’s theory, the logical, rational, largely conscious system of personality, which operates according to the reality principle.