The Disposable Income (DI) and Consumption (C) Schedules Are for

question 229

Multiple Choice

$$\begin{array} { | c | c | } \hline \text { Disposable Income } & \text { Consumption } \\\hline \$ 0 & \$ 8 \\\hline 80 & 80 \\\hline 160 & 152 \\\hline 240 & 224 \\\hline 320 & 296 \\\hline 400 & 368 \\\hline\end{array}$$ The disposable income (DI) and consumption (C) schedules are for a private, closed economy. All ?gures are in billions of dollars. The marginal propensity to save in this economy is

• A) 0.1.
• B) 0.72.
• C) 0.8.
• D) 0.9.

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Definitions:

Insurance Expired

The portion of an insurance premium that has been used up during the policy term, representing a cost for the period.

Administrative Facilities

Facilities utilized for administrative purposes, including offices, meeting rooms, and support areas that help in the management and operation of an organization.

Indirect Costs

Costs not directly tied to a specific product, project, or activity, such as utilities, rent, and administrative expenses that support the overall operation.

Factory Equipment Depreciation

This is the process of allocating the cost of factory equipment over its useful life, thereby reducing its value due to wear and tear, or obsolescence.