-In the Above Figure, If the Marginal Propensity to Consume

question 387

Multiple Choice

-In the above figure, if the marginal propensity to consume increases, the slope of the AE curve would

• A) increase.
• B) decrease.
• C) stay the same but the AE curve would shift upwards.
• D) stay the same but the AE curve would shift downwards.

---

Definitions:

Universal Ethical Principles

Moral beliefs and rules that are widely accepted across cultures and societies as the foundation for leading a good life and making just decisions.

Imaginary Audience

A psychological concept where an individual believes that his or her behavior is constantly being watched and judged by others, especially prevalent during adolescence.

Adolescent Egocentrism

A developmental phase during adolescence where individuals believe their own thoughts, feelings, and experiences are unique and not understood by others.

Hallucinogenic Drugs

Substances that alter perception, thoughts, and feelings, leading to hallucinations.