Consider a Consumption Function in a Simple Macro Model with Government

question 108

Multiple Choice

Consider a consumption function in a simple macro model with government and taxes.Given a marginal propensity to consume out of disposable income of 0.7 and a net tax rate of 30% of national income,the marginal propensity to consume out of national income is

• A)0.49.
• B)0.58.
• C)0.70.
• D)0.90.
• E)1.00.

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Definitions:

Human Resource Departments

Divisions within organizations responsible for managing employee-related processes like hiring, training, benefits, and compliance.

Outplacement Services

Support and assistance provided by an employer to help former employees transition to new jobs following layoffs or job loss.

Outsourcing

The practice of hiring external firms to handle work typically performed within a company, often to cut costs.

Personnel Department

The division within an organization responsible for managing human resources and staff-related issues, now more commonly referred to as Human Resources.