If the Slope of the Saving Function Is 0

question 315

Multiple Choice

If the slope of the saving function is 0.27, then the marginal propensity to _________.

• A) save is 0.73
• B) consume is 0.27
• C) consume is 0.73
• D) import is less than 0.27

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Definitions:

Mass Behavior

Similar behaviors engaged in by large groups of people without their necessarily being in the same place.

Contagion Theory

One of the earliest theories of collective action; suggests that individuals who join a crowd can become “infected” by a mob mentality and lose the ability to reason.

Collective Behavior

Behavior that follows from the formation of a group or crowd of people who take action together toward a shared goal.

Large Numbers

Numerical values that are significantly larger than those ordinarily encountered in daily life or in specific contexts, often requiring special methods for understanding or computation.