Exhibit 8-2 Consumption Function as Shown in Exhibit 8-2

question 181

Multiple Choice

Exhibit 8-2 Consumption function As shown in Exhibit 8-2, the marginal propensity to consume (MPC) is:

• A)0.25.
• B)0.50.
• C)0.75.
• D)0.90.

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Definitions:

Tax Revenue

The funds amassed by governments through the process of taxing.

State-Run Lotteries

Government-operated lotteries where the state controls and profits from the games, often marketed as a way to raise funds for public services.

Social Security Contributions

Payments made to a government scheme that provides benefits to employees and their families for retirement, disability, and death.

Payroll Taxes

Payroll taxes are levied on either employers or employees, typically based on a percentage of the wages paid by employers to their workers.