An Increase in the Marginal Propensity to Save (MPS)

question 52

Multiple Choice

An increase in the marginal propensity to save (MPS)

• A) increases the value of the multiplier.
• B) increases autonomous consumption.
• C) increases the marginal propensity to consume (MPC).
• D) none of the above.

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Definitions:

Müller-Lyer Illusion

An optical illusion where two lines of equal length appear to be of different lengths because of the presence of inward or outward facing arrowheads at their ends.

Apparent Distance Hypothesis

A theory explaining that emotions can alter the perceived distance of an object, with negative emotions making objects seem further away.

Cultural Bias Hypothesis

The theory suggesting that cognitive tests and other assessments may be biased towards the values and experiences of a specific cultural group.

Visible Spectrum

The portion of the electromagnetic spectrum that is visible to the human eye, typically encompassing wavelengths from about 380 to 740 nanometers.