Suppose the Economy's Saving Schedule Shifts from S₁to S₂as Shown

question 65

Multiple Choice

Suppose the economy's saving schedule shifts from S₁to S₂as shown in the below diagram.We can say that its:

• A)MPC has increased.
• B)MPS has increased.
• C)APS has increased at all levels of disposable income.
• D)APS has decreased at all levels of disposable income.

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Definitions:

Hypothalamus

A region of the brain that coordinates the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems, and involved in sleep and emotional activity.

Limbic System

A complex set of brain structures located on both sides of the thalamus, involved in processing emotions, motivation, and memory.

Pons

A part of the brain located in the brainstem, critical for relaying signals between the cerebrum and the cerebellum, and involved in functions such as sleep and arousal.

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often involving the autonomic nervous system.