If You Save $20 When You Experience a $200 Rise

question 25

Multiple Choice

If you save $20 when you experience a $200 rise in your income:

• A) your marginal propensity to consume is 0.1.
• B) your marginal propensity to consume is 0.9.
• C) your marginal propensity to save is 0.2.
• D) your marginal propensity to save is 0.8.

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Definitions:

Whistleblowing

The act of exposing any kind of information or activity that is deemed illegal, unethical, or not correct within an organization.

Government Protection

Measures and policies implemented by a government to ensure the safety, rights, and well-being of its citizens.

Morality

A system of conduct that covers all broadly based, mostly unwritten standards of how people should behave and generally conform to cultural ideals of right and wrong.

Rationalizations

Justifications or explanations that are logically plausible but are actually used to justify behavior or beliefs that are not based on reason.