Following Is Consumption Schedules for Three Private Closed Economies

question 82

Multiple Choice

Following is consumption schedules for three private closed economies.DI signifies disposable income and C represents consumption expenditures.All figures are in billions of dollars.

-Refer to the above data.The marginal propensity to save:

• A) is highest in economy (1).
• B) is highest in economy (2).
• C) is highest in economy (3).
• D) cannot be determined from the data given.

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Definitions:

Conformity Pressure

The psychological force exerted by group norms and expectations that compels individuals to align their behavior with the group.

Normative Influence

Socially based pressure felt by individuals to conform to the expectations or norms of a group, often to gain approval or avoid disapproval.

Informational Influence

A form of social influence where a person conforms to the beliefs or behaviors of a group because they think the group has accurate information.

Charismatic Leadership

A style of leadership characterized by a leader's ability to inspire and motivate followers through their charm and persuasive personality.