It Is Possible for the Marginal Propensity to Consume to Be

question 85

True/False

It is possible for the marginal propensity to consume to be less than one and the average propensity to consume to be greater than one at the same time.

---

Definitions:

Self-Serving Bias

A cognitive bias that involves attributing positive events to one's own character but attributing negative events to external factors, thereby protecting self-esteem.

Attributions

The process by which individuals explain the causes of behavior and events, attributing them to internal dispositions or external situations.

Favorable

Describes something that is advantageous, positive, or beneficial in nature.

Attribution Theory

A concept in psychology that explains how individuals pinpoint the causes of their own and others' behavior.