If the Consumption Function Is C = $100 Million

question 61

True/False

If the consumption function is C = $100 million + 0.8 * YD,then the marginal propensity to consume is $100 million.

---

Definitions:

Psychosexual Stages

A theory proposed by Freud that child development occurs in five stages (oral, anal, phallic, latency, genital) each associated with pleasure in different parts of the body.

Projective Tests

Psychological assessments that involve presenting individuals with ambiguous stimuli and interpreting their responses based on the projection of their subconscious thoughts and feelings.

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, imposing ethical standards and societal rules.

Ego

In psychoanalytic theory, the part of the personality that mediates between the impulses of the id, the demands of the environment, and the standards of the superego.