If You Live T Periods, , and

question 32

Multiple Choice

If you live T periods, , and
, with logarithmic utility, the marginal propensity of income is approximately equal to:

• A) 1/T.
• B) T.
• C) 1/2.
• D) .
• E) .

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Definitions:

Pessimistic Explanatory Style

A tendency to explain negative events as being pervasive, permanent, and personal.

Depression

A common mental disorder characterized by persistent sadness, a lack of interest in activities, and a decreased ability to enjoy life.

Passive Attribution

The tendency to explain someone's behavior by attributing it to the situation or environment rather than to the individual's own traits or choices.

Ruminate

The act of thinking deeply or repeatedly about something, often causing distress.