The Marginal Propensity to Consume

question 326

Multiple Choice

The marginal propensity to consume:

• A)is the change in consumption divided by the change in saving.
• B)is usually higher for unemployed individuals than for people who are very wealthy.
• C)is equal to the marginal propensity to save plus 1.
• D)tells policy makers the additional amount of investment spending that would accompany an additional amount of government spending.

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Definitions:

Managerial Abuse

Involves inappropriate or unethical behavior by managers towards their subordinates, including exploitation, discrimination, or harassment.

Objective Standards

Benchmarks or criteria that are based on facts and are impartial, allowing for fair assessment or decision-making.

Managerial Insistence

The practice where management steadfastly maintains or enforces its policies, decisions, or authority, sometimes at odds with employee or union preferences.

Production Technology

The methods, tools, and equipment used in the production of goods and services.