John Maynard Keynes's Central Proposition That a Dollar Increase in Disposable

question 82

Multiple Choice

John Maynard Keynes's central proposition that a dollar increase in disposable income would increase consumption, but by less than the increase in disposable income, means the marginal propensity to consume (MPC) is:

• A) greater than or equal to one.
• B) equal to one.
• C) less than one, but greater than zero.
• D) negative.

---

Definitions:

Construct Validity

The degree to which a test measures what it claims, or purports, to be measuring.

Coping

The strategies and mechanisms individuals use to manage stress and adversity.

Culturally Inappropriate Measures

Assessment tools or methods that are not suitable or are offensive in certain cultural contexts due to their assumptions, content, or methodologies.

Error Variance

The portion of variability in a set of data that arises from random factors or measurement errors, unrelated to the variables being studied.