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:

Peanut Allergies

An immune system reaction that occurs soon after exposure to peanuts, causing a range of symptoms from mild irritation to severe anaphylaxis.

Principle of Rights Theory

An ethical framework stating that actions are right if they respect the rights of individuals.

Affects the Rights

Impacts or alters the legal entitlements and privileges of an individual or group.

Duty-Based Ethical Standards

Ethical principles that emphasize the obligations and duties to act in morally correct ways, regardless of the outcomes.