If the Marginal Propensity to Consume Is

question 148

Multiple Choice

If the marginal propensity to consume is .9,then the marginal propensity to save must be:

• A) 1.
• B) .1.
• C) 1.1.
• D) .9.

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Definitions:

Open Systems

A concept in systems theory that describes entities or organizations which interact with their environment by exchanging energy, information, or materials.

General Systems Theory

A theoretical framework that views systems—whether biological, social, or physical—as coherent entities made up of interrelated and interdependent parts.

Continuous Exchange

An ongoing process of giving and receiving, often referring to information, goods, or services in various contexts.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy, starting from basic physical requirements to higher psychological needs, culminating in self-actualization.