The _____ Measure(s) the Proportion of Additional Income That Consumers

question 223

Multiple Choice

The _____ measure(s) the proportion of additional income that consumers spend.

• A) spending multiplier
• B) marginal propensity to consume
• C) marginal propensity to save
• D) spending multiplier, the marginal propensity to consume, and the marginal propensity to save

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Definitions:

Avoid Stress

Avoiding stress refers to strategies or actions taken to reduce or eliminate sources of tension and anxiety in one’s life.

Yerkes-Dodson Law

A psychological principle stating that there is an optimal level of arousal for performance on tasks—too little arousal can lead to underperformance, whereas too much can lead to errors.

Optimal Level

Refers to the most favorable or ideal state of something for its intended purpose or function.

Stimulation

The action of arousing interest, excitement, or activity in the mind or body.