Suppose That John Allocates $10,000 of His Disposable Income for Necessities

question 40

Multiple Choice

Suppose that John allocates $10,000 of his disposable income for necessities. Any additional income beyond that is both spent and saved. Assume he has a disposable annual income of $50,000 and an MPC=0.8. Based on this information the amount of money John should save would be:

• A) $10,000.
• B) $40,000.
• C) $12,000.
• D) $8,000.

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Definitions:

Secondary Gain

In psychodynamic theory, the gain people achieve when their somatic symptoms elicit kindness from others or provide an excuse for avoiding unpleasant activities.

Hysterical Somatoform Disorders

Psychological disorders characterized by physical symptoms that have no identifiable physical cause, often arising from emotional or psychological stress.

Self-instruction Training

A cognitive behavioral technique where one teaches themselves to direct attention, control behavior, and improve task performance through verbal cues.

Coping Self-statement

Positive affirmations or thoughts used by individuals to cope with stress, challenges, or to soothe themselves during difficult situations.