The Following Question Are Based on the Following Diagram

question 36

Multiple Choice

The following question are based on the following diagram:

-From the diagram,one can infer that the

• A) C + I + G line cannot change.
• B) marginal propensity to save is 1.
• C) multiplier is 2.5.
• D) 45-degree line is unstable.
• E) total intended spending always equals GDP.

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Definitions:

Collective Unconscious

A concept in Jungian psychology referring to the part of the unconscious mind shared among beings of the same species containing archetypal images.

Neo-Freudian

Psychologists who were influenced by Freud's theories but developed their own distinct psychological theories and concepts.

Jung

Refers to Carl Jung, a Swiss psychiatrist and psychoanalyst who founded analytical psychology and introduced concepts like archetypes and the collective unconscious.

Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, thus avoiding a psychologically uncomfortable truth.