Total Planned Expenditure (Equals Total Output)is 14,000 When Autonomous Consumption

question 69

Multiple Choice

Total planned expenditure (equals total output) is 14,000 when autonomous consumption expenditure is 450.When autonomous consumption expenditure falls to 400,total planned expenditure (equals total output) is 13,800.The marginal propensity to consume is ________.

• A)0.89
• B)0.75
• C)0.99
• D)0.44
• E)0.03

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Definitions:

Fixation

An obsessive focus or attachment to a person, object, or idea, which can interfere with normal psychological development or functioning.

Id

A component of Sigmund Freud's psychoanalytic theory, representing the instinctual drives and the source of psychic energy.

Superego

In psychoanalytic theory, the part of the personality that represents internalized ideals, providing standards for judgment and for future aspirations.

Resistance

In psychology, a phenomenon where individuals show opposition or avoidance in response to certain stimuli or interventions.