When the Marginal Propensity to Consume Is Less Than 1

question 19

Multiple Choice

When the marginal propensity to consume is less than 1, the:

• A) Average propensity to consume is greater than 1
• B) Average propensity to save is greater than 1
• C) Marginal propensity to save is negative
• D) Marginal propensity to save is positive

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Definitions:

Schizophrenia

A chronic mental disorder that affects a person's ability to think, feel, and behave clearly, often characterized by delusions and hallucinations.

Genetically Vulnerable

Refers to individuals who are more likely to develop certain diseases or conditions due to their genetic composition.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes, known for its sedative and mood-altering effects.

Methamphetamine

A powerful, highly addictive stimulant that affects the central nervous system, known for its use as an illicit drug.