Suppose, as Unrealistic as This Might Be, That Disposable Income

question 45

Multiple Choice

Suppose, as unrealistic as this might be, that disposable income is zero for a country. Given this information, we know that:

• A) private saving is negative.
• B) consumption must be zero.
• C) the propensity to save must be zero.
• D) private saving must be zero.
• E) private saving must be positive.

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Definitions:

Paternalism

The policy or practice on the part of people in positions of authority of restricting the freedom and responsibilities of those subordinate to or dependent upon them, supposedly for the latter’s own good.

Task System

A labor system predominantly used in the rice and indigo plantations of the American South, where enslaved people were assigned specific tasks to complete each day, after which they had some personal time.

Historical Significance

The importance assigned to a past event, character, or invention, reflecting its impact on history and its influence on future developments or attitudes.

Underground Railroad

A network of secret routes and safe houses used in the United States during the 19th century to help enslaved African Americans escape to free states and Canada.