When the Marginal Propensity to Save Declines,the

question 58

Multiple Choice

When the marginal propensity to save declines,the

• A)multiplier becomes larger and the IS curve becomes flatter.
• B)marginal propensity to consume increases and there is no effect on the IS curve.
• C)multiplier becomes larger and the IS curve becomes steeper.
• D)multiplier declines and the IS curve becomes steeper.

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Definitions:

Disequilibration

A cognitive state of imbalance or confusion that occurs when new information challenges existing schemas or beliefs.

Accommodation

In psychology, the process of adjusting one's cognitive schemas to incorporate new information.

Adaptation Process

The method through which entities adjust to changes in their environment or conditions to improve survival or function.

Piaget's Approach

A theory of cognitive development that describes how children develop logical thinking through a series of stages, starting from infancy.