If Consumption Rises from $500 Billion to $575 Billion and Income

question 210

Multiple Choice

If consumption rises from $500 billion to $575 billion and income rises from $600 billion to $700 billion, the marginal propensity to save is

• A) 0.2.
• B) 0.25.
• C) 0.75.
• D) 1.17.

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Definitions:

Ego Ideal

An essential component of the personality in Freudian psychoanalysis, representing an individual's ideal self and the standards by which they judge their own actions.

Psychodynamic Theorist

A specialist in a psychological approach that emphasizes the systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Maslow

Refers to a hierarchy of needs theory proposed by Abraham Maslow, which suggests that people are motivated to fulfill basic needs before moving on to other, more advanced needs.

Skinner

B.F. Skinner was a prominent psychologist known for his work in behaviorism and for developing the theory of operant conditioning.