The Greater Is the Marginal Propensity to Consume, the

question 233

Multiple Choice

The greater is the marginal propensity to consume, the

• A) smaller is the marginal propensity to save.
• B) higher is the interest rate.
• C) smaller is the average propensity to consume.
• D) lower is the price level.

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Definitions:

Schemas

In psychology, schemas are cognitive structures that help individuals organize and interpret information, based on their accumulated knowledge and experience.

Intelligence

The capacity to learn, understand, and apply knowledge, solve problems, and adapt to new situations.

SES

Short for Socioeconomic Status, a measure of an individual's or family's economic and social position relative to others, based on income, education, and occupation.

Whole Number Skills

The ability to use and understand integers (positive, negative, and zero) in arithmetic operations.