If the Marginal Propensity to Consume Is 0

question 20

Multiple Choice

If the marginal propensity to consume is 0.60, the marginal propensity to save will be:

• A)​greater than 0.60.
• B)​equal to 0.40.
• C)​equal to 0.60.
• D)​equal to 0.

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Definitions:

Psychosocial Development

A theory that describes the stages of psychological and social development that humans go through from infancy to adulthood.

Self-confidence

The belief in one's own abilities or competence.

Basic Characteristic

A fundamental or inherent attribute that defines or distinguishes an entity, concept, or thing.

Psychosocial Development

A theory that divides human growth and development into eight stages, each involving psychological and social conflicts that individuals must resolve to develop essential virtues.