The Smaller the Amount Saved Out of a Change in Disposable

question 68

Multiple Choice

The smaller the amount saved out of a change in disposable income,the

• A)more horizontal the consumption function.
• B)more net taxes affect consumption.
• C)larger the MPC.
• D)smaller the MPC.
• E)smaller is autonomous consumption.

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Definitions:

Dual Innervation

The characteristic of organs receiving impulses from both sympathetic and parasympathetic nervous systems, allowing for precise control.

Sympathetic Regulation

The process by which the sympathetic nervous system influences bodily functions, often leading to increased alertness and energy expenditure.

Parasympathetic Regulation

The control of body functions by the parasympathetic nervous system, which conserves energy and slows the heart rate, among other functions.

Innervation

The supply of nerves to a specific body part, enabling sensation and movement.