Which of the Following Statements Is False

question 200

Multiple Choice

Which of the following statements is false?

• A) MPC plus MPS equals 1.
• B) MPC is additional saving divided by additional disposable income.
• C) The MPS is the ratio of the change in saving to the change in disposable income.
• D) If MPC equals 0.80,autonomous consumption equals $400,and disposable income equals $600,then consumption equals $880.
• E) none of the above

---

Definitions:

Signal-Detection Theory

A framework describing how individuals differentiate between informative signals and noise in the environment.

Cognitive Dissonance Theory

A theory suggesting that we experience discomfort (dissonance) when our thoughts, beliefs, or behaviors are inconsistent with each other, leading to a change in one to reduce the dissonance.

Opponent-Process Theory

A psychological and neurological model that describes how opposing emotions balance out over time, influencing feelings and behaviors.

Depth-Of-Processing Theory

This theory posits that the depth (shallow to deep) of mental processing affects long-term memory retention; deeper levels of analysis produce more durable memory traces.