If Income Grows from $3,000 Per Month to $3,500 Per

question 230

Multiple Choice

If income grows from $3,000 per month to $3,500 per month and savings rise from $200 per month to $400 per month,what is the marginal propensity to save?

• A) 1.25
• B) 0.8
• C) 2.5
• D) 0.4

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Definitions:

Dramatic Cluster

In psychology, refers to a group of personality disorders, including antisocial, borderline, histrionic, and narcissistic personality disorders, characterized by dramatic, emotional, or erratic behavior.

Tension

The state of being stretched tight, often leading to stress or strain in materials or psychological states in individuals.

Personality Disorders

Personality disorders are mental health conditions characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from cultural norms.

Dissociative Disorder

A mental health condition characterized by a disruption or discontinuity in the normal integration of consciousness, memory, identity, emotion, perception, body representation, motor control, and behavior.