Which of the Following Concerning the Marginal Propensity to Consume

question 81

Multiple Choice

Which of the following concerning the marginal propensity to consume and the consumption function is true?
I. The larger the marginal propensity to consume, the greater the amount of autonomous consumption.
II. The larger the marginal propensity to consume, the steeper the consumption function.

• A)I
• B)II
• C)Both I and II are true.
• D)Neither I nor II is true.

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Definitions:

Fear Responses

The psychological and physiological reactions to perceived threats that can include fight, flight, or freeze responses, often involving activations of the amygdala and sympathetic nervous system.

Basic

Referring to something fundamental, simple, or at the introductory level; often used to signify essential concepts or principles.

Neurons

Specialized cells of the nervous system that transmit information to other nerve cells, muscle, or gland cells, fundamental in the communication within the brain and body.

Electrically Charged

Having a property that causes it to attract or repel other electrically charged objects due to the presence of electric charges on its surface.