(Advanced Analysis) If the Equation for the Consumption Schedule Is

question 152

Multiple Choice

(Advanced analysis) 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:

Bureaucratic Organisation

A structured, formal organization characterized by fixed rules, a clear hierarchy, and detailed procedures and protocols to manage activities.

Mature Organisation

An organization that has developed over time to a stage where it enjoys stable growth, well-established systems, and processes, and a clear sense of identity.

Systems Thinking

An analytical approach that focuses on understanding how components of a system interact with each other within a complete entity or larger system.

Contingency Thinking

The mindset of preparing for and adapting to unforeseen or variable circumstances in decision-making.