Assume That the Consumption Function Is C = 200

question 86

Multiple Choice

Assume that the consumption function is C = 200 + 0.8Y. The marginal propensity to consume is:

• A) 0.8.
• B) 1.0.
• C) 0.9.
• D) 0.2.

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Definitions:

Tenant-Days

A measure used in the hospitality or rental industry, representing the total number of days that tenants occupy a space.

Facility Expenses

Costs associated with the physical locations where businesses operate, such as rent, utilities, maintenance, and security.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, providing a more accurate comparison between actual and budgeted performance.

Spending Variance

The difference between the budgeted amount of expense or cost and the actual amount spent.