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:

Raised Together

Refers to individuals who have grown up in the same environment or under similar upbringing conditions.

Raised Apart

Describes individuals, typically siblings or twins, who were separated and grew up in different environments.

Brain Systems

Complex networks of neurons and structures within the brain that work together to perform various cognitive, sensory, and motor functions.

Neural Impulses

Electrical signals that travel along neurons, facilitating communication within the brain and between the brain and the rest of the body.