If the Equation for the Consumption Schedule Is C =

question 74

Multiple Choice

If the equation for the consumption schedule is C = 20 + 0.8Y, where C is consumption and Y is disposable income, then the average propensity to consume is 1 when disposable income is:

• A)$80
• B)$100
• C)$120
• D)$160

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Definitions:

Procedural Memory

The type of long-term memory responsible for knowing how to perform different actions and skills, essentially knowledge of procedures rather than facts.

Episodic Memory

The type of long-term memory that involves the recollection of specific events, situations, and experiences.

Script

A schema for an event, often containing information about physical features, people, and typical occurrences.

Implicit Memory

Memory that enables people to perform tasks without conscious awareness of these previous experiences.