Exhibit 9-9 -The Larger the Marginal Propensity to Save,other Things Constant

question 82

Multiple Choice

Exhibit 9-9
-The larger the marginal propensity to save,other things constant,

• A)the larger the marginal propensity to consume
• B)the larger the multiplier
• C)the steeper the consumption function
• D)the steeper the saving function
• E)the flatter the saving function

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Definitions:

Reaction Formation

A psychological strategy wherein a person subconsciously swaps out undesirable emotions or ideas with their direct contrasts.

Displacement

In psychology, a defense mechanism where negative feelings are transferred from the original source of the emotion to a less threatening person or object.

Identification

The process by which an individual aligns themselves with the values, beliefs, or behaviors of another person or group.

Superego

In psychoanalytic theory, the part of the personality that represents internalized ideals, morals, and societal norms, guiding behavior through conscience.