When the Marginal Propensity to Consume Is Less Than 1

question 131

Multiple Choice

When the marginal propensity to consume is less than 1, the

• A) average propensity to consume is greater than 1.
• B) average propensity to save is greater than 1.
• C) marginal propensity to save is negative.
• D) marginal propensity to save is positive.

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Definitions:

Ego-Defensive Function

A psychological defense mechanism in which an individual adopts certain behaviors or attitudes to protect their self-esteem or ego from perceived threats.

Utilitarian Function

Refers to the practical or useful aspects of a product or service that satisfy basic needs and functionalities for a user.

Functional Theory

A framework that explains how different aspects or components of society contribute to the overall stability and functionality of the societal system.

Katz

Likely refers to Daniel Katz, an American psychologist known for his contributions to social psychology and the study of attitudes.