Final answer:
The method of characterization where the reader infers character traits from actions and interactions is called indirect characterization. Dynamic characters change significantly, whereas static characters often remain the same.
Step-by-step explanation:
The method of characterization in which the author allows the reader to draw their own conclusions from what the character does or thinks, or how other characters respond to them, is known as indirect characterization. This approach involves the author presenting the character's behavior, thoughts, and interactions with other characters, rather than explicitly stating traits. Readers then infer details about the character's personality and motivations based on these observations.
Dynamic characters are central to a story's narrative and are typically well-developed, often experiencing significant personal change, while static characters may serve a specific narrative or thematic function, undergoing little change. Whether through dialogue, physical descriptions, or actions, characterization is critical for a reader's engagement and reaction to story characters.