A Decrease in the Marginal Propensity to Save from 0

question 36

Multiple Choice

A decrease in the marginal propensity to save from 0.42 to 0.13 will cause:

• A) the ZZ line to become steeper and a given change in autonomous spending (c0) to have no effect on output.
• B) the ZZ line to become steeper and a given change in autonomous spending (c0) to have a larger effect on output.
• C) the ZZ line to become flatter and a given change in autonomous spending (c0) to have a smaller effect on output.
• D) the ZZ line to become flatter and a given change in autonomous spending (c0) to have a larger effect on output.
• E) the ZZ line to become steeper and a given change in autonomous spending (c0) to have a smaller effect on output.

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Definitions:

Sensory Receptors

Specialized cells or nerve endings that respond to changes in the environment and transmit signals to the nervous system.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Visual Sensation

The experience of receiving and interpreting light through the eyes, leading to the perception of the surrounding environment.

Visual Perception

The ability to interpret the surrounding environment using light in the visible spectrum reflected by the objects in the environment.