If a Country's Saving Preference Increased from 10 Percent to 12

question 113

Multiple Choice

If a country's saving preference increased from 10 percent to 12 percent of disposable income and it was operating at its steady state before the change, we would expect to see which of the following? I. a decrease in capital stock II. a decrease in real GDP III. an increase in real GDP IV. an increase in capital stock

• A) I and II only
• B) II and III only
• C) III and IV only
• D) I and III only

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Definitions:

Neurotic Need

Refers to one of the ten specific psychosocial needs identified by psychoanalyst Karen Horney that individuals may develop in response to anxiety stemming from interpersonal relationships.

Collective Unconscious

A concept in analytical psychology proposed by Carl Jung, referring to the part of the unconscious mind containing memories and archetypes shared among people across cultures and generations.

Jung

Refers to Carl Gustav Jung, a Swiss psychiatrist and psychoanalyst who founded analytical psychology, emphasizing the importance of the individual psyche and the personal quest for wholeness.

Anima

In Jung’s version of psychoanalysis, the idea of the typical female as held in the mind of a male.