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

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Definitions:

Fixated

Describes a psychological state or condition where an individual becomes obsessively focused on an object, subject, or activity.

Oral Stage

A phase in Freud's psychosexual development theory occurring from birth to about 18 months, where an infant's pleasure centers on the mouth.

Defense Mechanisms

Unconscious psychological strategies brought into play by the mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.

Ego

In psychoanalytic theory, the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.