If the Marginal Propensity to Save Is 0

question 186

Multiple Choice

If the marginal propensity to save is 0.1, then a $10 million decrease in disposable income will

• A)increase consumption by $9 million.
• B)increase consumption by $1 million.
• C)decrease consumption by $9 million.
• D)decrease consumption by $1 million.
• E)leave consumption unchanged.

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Definitions:

Social Constructionism

A theory in sociology and philosophy which suggests that many aspects of the world, including knowledge, are not inherent in reality but are constructed by society.

Differential Association

A theory in sociology that proposes individuals learn criminal behavior through their associations with others who engage in crime.

Consensus Crimes

Criminal acts that are universally condemned by society and considered inherently wrong, such as murder and rape.

Legal Conflict

A disagreement or dispute between parties that requires the intervention of a court of law to resolve.