If for Every One Dollar Increase in Income,savings Increases by 25

question 8

Multiple Choice

If for every one dollar increase in income,savings increases by 25 cents,the marginal propensity to consume is _________ and the closed economy multiplier is ______.

• A).25,4
• B).75,4
• C).25,.04
• D).75,1.333

---

Definitions:

Functionalist

A theoretical perspective that analyzes social phenomena in terms of their functions or contributions to the maintenance of societal stability.

Independent Variable

In scientific research, the variable that is intentionally changed to observe its effect on the dependent variable.

Knowledge Retention

The process by which information and skills are retained in an individual or organization, often involving memory and learning practices.

Exam Grade

A measure or score assigned to evaluate a student's performance on an academic examination, reflecting the level of understanding and mastery of the subject matter.