Suppose the Consumption Function Is Given by the Equation C

question 20

Multiple Choice

Suppose the consumption function is given by the equation C = 100 + 0.8YD, where YD is disposable income. What is the marginal propensity to consume?

• A) 2.0
• B) 0.8
• C) 100
• D) 0.2

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Definitions:

Psychosocial Development

A domain of development that involves changes in how individuals understand themselves and others, including emotions, personality, and social interactions.

Well-rounded Education

An educational approach that emphasizes a broad range of subjects and experiences, aiming to develop varied skills and comprehensive knowledge in students.

Well-paying Job

Employment that offers a salary or wage significantly higher than the average, providing financial stability and often associated with specialized skills or qualifications.

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The physical grounds and buildings where college or university education takes place, often including living residences and other student services.