An Increase in the Marginal Propensity to Save from

question 11

Multiple Choice

An increase in the marginal propensity to save from .1 to .2 will cause

• A)an increase in the multiplier and a given change in autonomous consumption (c0)to have a smaller effect on output.
• B)an increase in the multiplier and a given change in autonomous consumption (c0)to have a larger effect on output.
• C)a reduction in the multiplier and a given change in autonomous consumption (c0)to have a smaller effect on output.
• D)a reduction in the multiplier and a given change in autonomous consumption (c0)to have a larger effect on output.

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Definitions:

Competence

The ability or skill to effectively perform or complete a task to a specified standard.

Community Psychology

A branch of psychology that studies the relationships of individuals within their community and the wider society to improve welfare.

Psychological Health

A state of well-being in which an individual realizes his or her own abilities, can cope with the normal stresses of life, can work productively, and is able to make a contribution to his or her community.

Social Action

An act undertaken with the intention of causing change in society or in particular social structures.