Which of the Following Statements Must Be True in the Simple

question 98

Multiple Choice

Which of the following statements must be true in the simple macro model (with a closed economy and no government) ?

• A)APC increases as income rises.
• B)APS decreases as income rises.
• C)MPS and MPC are both negative.
• D)MPC is negative below a certain level of income.
• E)The sum of MPC and MPS is one.

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Definitions:

Ethical Audit

An examination of an organization's practices, procedures, and products to ensure they align with ethical standards and values.

Organizational System

The structured arrangement of components and processes in an organization that work together to achieve business objectives.

Situational and Environmental Factors

External influences that affect individual behaviors and decision-making processes, including physical, social, and organizational contexts.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, laws, and rules.