Suppose the Consumption Equation Is Represented by C = 380

question 44

Multiple Choice

Suppose the consumption equation is represented by C = 380 + 0.75YD, the propensity to save is:

• A) 0.25.
• B) 4.55.
• C) 0.85.
• D) 5.75.
• E) 1.20.

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Definitions:

Blind Spot

An area in the field of vision that is not detected by the eye, where the optic nerve connects to the retina, or metaphorically, an area of ignorance or lack of awareness.

Retina

A layer at the back of the eyeball containing cells that are sensitive to light and trigger nerve impulses that pass via the optic nerve to the brain, where a visual image is formed.

Sensation

The process by which sensory receptors and the nervous system receive stimuli from the environment, such as touch, taste, smell, sound, and sight.

Perception

The process by which sensory information is organized, interpreted, and consciously experienced.