If the Marginal Propensity to Consume Is 0

question 59

Multiple Choice

If the marginal propensity to consume is 0.25, it would mean that:

• A) $0.25 of an additional $1 of individuals' after-tax income is spent on consumption.
• B) $0.25 of an additional $1 of individuals' after-tax income is saved.
• C) $0.75 of an additional $1 of individuals' after-tax income is spent on consumption.
• D) None of these are true.

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Definitions:

Horney

Refers to Karen Horney, a psychoanalytic psychologist known for her theory of neurotic needs and her disagreement with Freud's theories on women.

Therapist-Client Relationship

Refers to the professional and therapeutic interaction between a therapist and their client, which is essential for effective treatment and healing.

Freud

Austrian neurologist best known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Horney

Refers to Karen Horney, a psychoanalyst known for her theories on neurosis, personality, and the importance of social relationships.