Suppose the Consumption Function Is Given by the Equation C

question 97

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)100
• B)0.2
• C)0.8
• D)2.0

---

Definitions:

Deindividuation

A psychological state characterized by decreased self-awareness and a diminished sense of personal responsibility, often occurring in group settings.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work independently.

Business Managers

Individuals responsible for planning, organizing, leading, and overseeing the activities and operations in an organization.

Form Teams

The process of creating groups of individuals to work together towards a common goal or project.