When the Marginal Propensity to Consume Is Less Than 1

question 20

Multiple Choice

When the marginal propensity to consume is less than 1, the

• A)average propensity to consume is greater than 1.
• B)average propensity to save is greater than 1.
• C)marginal propensity to save is negative.
• D)marginal propensity to save is positive.

---

Definitions:

Personal Fable

A belief held by adolescents that they are special and unique, making them invulnerable to the consequences that affect others.

Self-Consciousness

An acute awareness of oneself, one's appearance, or one's actions, which can affect an individual's behavior in social contexts.

Formal Operational

The stage of cognitive development, as proposed by Piaget, where individuals are able to think abstractly, logically, and systematically.

Concrete Operational

A stage in Piaget's theory of cognitive development where children aged 7 to 11 years start thinking logically about concrete events.