Other Things Constant, How Would a Smaller Marginal Propensity to Save

question 112

Multiple Choice

Other things constant, how would a smaller marginal propensity to save affect the consumption function?  

• A) The smaller the marginal propensity to save, the longer the consumption function. 
• B) The smaller the marginal propensity to save, the shorter the consumption function. 
• C) The smaller the marginal propensity to save, the flatter the consumption function. 
• D) The smaller the marginal propensity to save, the steeper the consumption function.

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Definitions:

Leader Behaviour

Actions and attitudes demonstrated by a leader, influencing the group's activities and the environment.

Empowering Leadership

Implementing conditions that enable power to be shared with employees.

Followers

Individuals who support and are guided by a leader or a belief system, often contributing to the fulfillment of shared objectives.

Vision

The ability to think about or plan the future with imagination or wisdom.