Suppose a Consumption Function Is Given as C = $150

question 130

Multiple Choice

Suppose a consumption function is given as C = $150 + 0.75Y_D.The marginal propensity to save is

• A)150.
• B)0.75.
• C)0.25.
• D)-0.75.

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Definitions:

External Benefit

A positive effect on a party who did not choose to incur that benefit, often associated with public goods or services.

Public‐spirited

Exhibiting a selfless concern for the well-being of the community and the willingness to act for the public good.

Air Pollution

The presence of substances in the atmosphere that are harmful to the health of humans and other living beings or cause damage to the climate or materials.

Medical Care

Services provided by healthcare professionals to diagnose, treat, or prevent diseases and injuries in individuals.