The Increase in Income Which Results from an Increase in Investment

question 54

Multiple Choice

The increase in income which results from an increase in investment spending would be greater the:

• A)smaller the MPS.
• B)smaller the APC.
• C)larger the MPS.
• D)smaller the MPC.

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Definitions:

Maslow

An American psychologist who created the hierarchy of needs, a theory in psychology concerning human motivation based on prioritized needs.

Spontaneous

Occurring without apparent external cause; impromptu or unplanned.

Reproductive Payoffs

Benefits or advantages obtained through reproducing, often in the context of evolutionary biology, referring to the success of passing genes to the next generation.

Evolutionary

Pertains to the gradual process of biological change and development over successive generations.