Other Things Equal, an Increase in the Marginal Propensity to Save

question 7

Multiple Choice

Other things equal, an increase in the marginal propensity to save will __________ the size of the "autonomous spending multiplier" (or "the multiplier") ; other things equal, an Increase in the marginal tax rate __________ the size of the "autonomous spending multiplier" (or "the multiplier") .

• A) increase; also will increase
• B) increase; will decrease
• C) decrease; will increase
• D) decrease; also will decrease

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Definitions:

Positive Self-Concept

An individual's overall sense of self-value that is positive and healthy.

Sense Of Shame

A complex emotion that combines feelings of failure, dishonor, and unworthiness, often triggered by perceived personal shortcomings or societal judgment.

Prove Himself

The act of demonstrating one's abilities or worthiness through actions or achievements.

Protective Optimism

The belief that positive outcomes are more likely than negative ones, often leading individuals to take preventive actions.