Let C = 100 + 0

question 12

Multiple Choice

Let C = 100 + 0.9YDp) be the consumption function for two people, A and B, with YDp) notationally indicating their view of their permanent income. Summarize that view by defining YDp) = 0.5YD-0) + 0.25YD-1) + 0.25YD-2) with YD-j) notationally representing disposable income lagged j years. If three successive years of disposable income equaling $10,000 were followed by a year of A earning $11,000 and B earning $15,000, then the marginal propensity to consume would equal

• A) 0.45 for both A and B.
• B) 0.45 for A and 0.4 for B.
• C) 0.4 for A and 0.45 for B.
• D) 0.9 for both A and B.
• E) none of the above.

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Community Engagement

Involves the process of working collaboratively with community groups to address issues that impact their well-being.

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The perceived advantage or dominance of a brand over its competitors, based on qualities like performance, quality, value, or consumer preference.

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The practice of building and nurturing meaningful interactions and relationships with community members.