Suppose the Consumption Function Is Given by the Equation C

question 117

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) 0.2
• C) 0.8
• D) 100

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Definitions:

Young Adult

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An area characterized by a significant lack of financial resources and access to basic needs among its residents.