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:

Emancipate

To free someone from legal, social, or political restrictions; commonly used in historical contexts to refer to the freeing of slaves.

Black Slaves

Individuals of African descent who were forcibly taken into slavery and subjected to lifetime servitude, particularly prominent in the Americas during the transatlantic slave trade.

Colonial Militia

Military forces composed of ordinary citizens to protect their communities, colonies, or states, especially during the early history of the United States.

Racial Restrictions

Laws or policies that limit or dictate the rights and opportunities of individuals based on race.