If a Fall in Investment Demand of 100 Units Causes

question 46

Multiple Choice

If a fall in investment demand of 100 units causes equilibrium income to fall by 150 units in the simple Keynesian model,then the marginal propensity to save must be

• A).25.
• B)1.5.
• C).5.
• D)1/3.
• E)2/3.

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Definitions:

Stability

The condition of being steady, constant, and free from change or variation, often aimed for in both economic and organizational contexts.

Progression Principle

A concept in fitness and training that emphasizes the need for increasing the intensity and workload over time to achieve continued improvement.

Activated

Made active or operational; refers to initiating processes or mechanisms.

Motivate Behaviour

The process of encouraging actions or conduct towards achieving specific goals through incentives or psychological methods.