When the Average Propensity to Save (APS) Is 0

question 25

Multiple Choice

When the average propensity to save (APS) is 0.25, then this means

• A) people are spending 25 percent of their disposable income.
• B) people are spending 75 percent of their disposable income.
• C) people are saving $0.25 of the last dollar earned.
• D) people are spending 40 percent of their disposable income and investing the remaining 60 percent.

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Definitions:

Cohen and Colleagues

A reference to a group of researchers led by psychologist Sheldon Cohen, known for their studies on stress, health, and social support.

Response Strength

The extent or intensity of an organism's reaction to a specific stimulus or series of stimuli, often used in behaviorism to measure learning or conditioning.

Self-modification

Refers to the process of altering one's behavior, thoughts, or emotions in a conscious effort to improve oneself.

Positive Reinforcement

The strengthening of a response (increases in frequency) because it is followed by the arrival of a (presumably) pleasant stimulus.