If the Marginal Propensity to Consume Was 0

question 92

Multiple Choice

If the marginal propensity to consume was 0.9, it would mean that:

• A) consumers spend $9 out of every $10 of additional disposable income.
• B) consumers save $9 out of every $10 of additional disposable income.
• C) consumers spend $1 out of every $10 of additional disposable income.
• D) people should save more.

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Definitions:

Out-group Dynamics

Refers to the social and psychological phenomena associated with individuals or groups perceiving themselves as distinct or separate from another group, often leading to prejudice or rivalry.

High Schools

Educational institutions providing secondary education to adolescents, typically offering grades 9 through 12.

Functionalist

A perspective in sociology and anthropology that interprets society as a structure with interrelated parts designed to meet the biological and social needs of individuals that make up that society.

Conflict-Theory

A sociological perspective that emphasizes the role of power and coercion in producing social order, particularly focusing on the conflicts between different social classes.