According to the Above Figure, at an Income Level of Y1

question 434

Multiple Choice

According to the above figure, at an income level of Y1,

• A) the economy saves an amount equal to BD.
• B) the marginal propensity to save is falling.
• C) the average propensity to save is greater than one.
• D) the economy dissaves an amount equal to BD.

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Definitions:

New Information

Data or facts received or learned about something or someone for the first time.

Conscious Awareness

The state of being awake and aware of one's surroundings, thoughts, and feelings.

Misleading Information

Incorrect or twisted information which leads to false impressions or conclusions.

Motivated Forgetting

A psychological process in which individuals subconsciously or consciously block out memories or information that is painful, embarrassing, or otherwise unpleasant.