A Reduction in the Marginal Propensity to Save from

question 20

Multiple Choice

A reduction in the marginal propensity to save from .4 to .3 will cause

• A)the ZZ line to become steeper and a given change in autonomous consumption (c₀)to have a smaller effect on output.
• B)the ZZ line to become steeper and a given change in autonomous consumption (c₀)to have a larger effect on output.
• C)the ZZ line to become flatter and a given change in autonomous consumption (c₀)to have a smaller effect on output.
• D)the ZZ line to become flatter and a given change in autonomous consumption (c₀)to have a larger effect on output.

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Definitions:

Aerobic Work-Out

Exercise that involves or improves oxygen consumption by the body, promoting cardiovascular health.

Operational Definition

A clear, precise criteria for measuring a variable or concept within an experiment, ensuring that the variable is quantifiable and the experiment replicable.

Empirically Tested

Evaluated or tested based on observations or experience rather than theory or pure logic.

Experimental Method

A scientific approach to research in which an investigator manipulates one or more variables to determine their effect on a certain outcome.