Economists Based Their Prediction That Secular Stagnation Would Occur as Economies

question 16

Multiple Choice

Economists based their prediction that secular stagnation would occur as economies prospered on the conjecture that:

• A) the marginal propensity to consume is greater than zero.
• B) the marginal propensity to consume is less than one.
• C) the average propensity to consume falls as income rises.
• D) income is the primary determinant of consumption.

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Definitions:

Footwall

The wall rock beneath an inclined fault.

Asymmetric Syncline

An asymmetric syncline is a fold in sedimentary layers that is uneven or lopsided, with one side of the fold having a gentler slope than the other.

Asymmetric Anticline

A fold in sedimentary layers that has unequal slopes on either side, typically illustrating differential stresses during its formation.

Plunging Syncline

A syncline structure where the fold axis is inclined, giving the impression of the layers diving underground.