If the Marginal Propensity to Save Is 0

question 41

Multiple Choice

If the marginal propensity to save is 0.4,then a $2 million increase in disposable income will

• A)increase consumption by $5 million.
• B)increase consumption by $1.2 million.
• C)decrease consumption by $5 million.
• D)decrease consumption by $1.2 million.

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Definitions:

Fugue State

A rare psychological state in which a person loses awareness of their identity or other important autobiographical information and often engages in unexpected travel or wandering.

Dissociative Identity Disorder

A severe form of dissociation characterized by the presence of two or more distinct identity or personality states that control an individual’s behavior in different circumstances.

Depersonalization/Derealization Disorder

Syndrome marked by frequent episodes of feeling detached from one’s own body and mental processes, as if one were an outside observer of oneself; symptoms must cause significant distress or interference with one’s ability to function.

Distressing Episodes

Episodes or periods characterized by intense emotional discomfort or pain, which can impact an individual's psychological well-being.