If the Marginal Propensity to Consume (MPC)decreases, Then

question 146

Multiple Choice

If the marginal propensity to consume (MPC) decreases, then

• A)the marginal propensity to save (MPS)decreases.
• B)the multiplier decreases.
• C)the multiplier increases.
• D)MPC + MPS is less than 1.

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Definitions:

Performance

The act of performing a task or function, often measured against preset known standards of accuracy, completeness, cost, and speed.

Positively Related

A relationship between two variables where an increase in one variable is associated with an increase in the other.

Negatively Related

Negatively Related indicates a relationship where one variable increases while the other decreases, or vice versa, showing an inverse correlation.

Extrinsic Motivation

Motivation driven by external rewards such as money, praise, or avoiding negative consequences, rather than intrinsic satisfaction.