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:

NeoPiagetians

Theorists who explain Piaget’s stages or revise the stages using many information processing concepts. These theorists attempt to combine the best components of both Piagetian and information processing approaches.

Cognitive Development

This refers to the growth of mental processes and capabilities, including thinking, problem-solving, and decision-making abilities, across a person's lifespan.

Information Processing

The method by which individuals perceive, analyze, manipulate, store, and recall information through mental and cognitive functions.

Concrete Operations

A stage in Jean Piaget’s theory of cognitive development, typically occurring between ages 7 and 12, where children start thinking logically about concrete events.