Exhibit 8-5 Consumption Function as Shown in Exhibit 8-5

question 130

Multiple Choice

Exhibit 8-5 Consumption function As shown in Exhibit 8-5, the marginal propensity to save (MPS) is:

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

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Definitions:

Corn-based Ethanol

Ethanol produced from corn as a biomass through a fermentation process, primarily used as a biofuel additive for gasoline.

Household Incomes

The total amount of money earned by every member of a household, including wages, salaries, benefits, and other sources of income.

Microchips

Small semiconductor devices that contain integrated circuits used for various types of electronics and devices.

Equilibrium Price

The equilibrium price where the supply of items perfectly aligns with the demand for them in the marketplace.