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:

Overimitation

The action of imitating behaviors excessively, often observed in children who replicate adults' actions even when they are unnecessary for achieving a goal.

Plastic Jar

A container made from plastic materials, used for storing a variety of items.

Feather

A feather is a lightweight, growth from the skin of birds, serving functions such as flight, thermal insulation, and display for attracting mates.

Prosocial Behaviors

Voluntary actions intended to benefit or help others, motivated by empathy, moral principles, or the desire to act in socially acceptable ways.