In an Economy, for Every $10 Million Increase in Disposable

question 12

Multiple Choice

In an economy, for every $10 million increase in disposable income, saving increases by $2 million. It can be concluded that the

• A) slope of the saving schedule is 2.
• B) slope of the consumption schedule is 0.8.
• C) marginal propensity to consume is 0.2.
• D) average propensity to save is 0.2.

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Definitions:

Coercive

Pertaining to employing intimidation or physical power to coerce someone into doing something or to ensure obedience.

Trusting

The attitude or disposition to believe in the reliability, truth, ability, or strength of someone or something.

Parenting Styles

Different approaches to raising children characterized by various combinations of responsiveness and demandingness.

Responsiveness

The quality of reacting quickly and positively, especially to stimuli or treatment.