If the Consumption Function Is C = 25

question 91

Multiple Choice

If the consumption function is C = 25 + (.80 × disposable income) , what is the marginal propensity to consume?

• A) .80
• B) .20
• C) .25
• D) It is impossible to tell without knowing either the level of consumption or the level of disposable income.

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Definitions:

Butterfly system

A type of intravenous needle or system known for its small, winged design, allowing for easier, more stable access to veins.

Small veins

Blood vessels that carry blood toward the heart from the tissues; smaller than arteries and larger than capillaries.

Fragile veins

Veins that are easily damaged or bruised, often posing a challenge for medical procedures such as blood draws or IV insertions.

Automatic puncturing device

A tool designed to automatically puncture or penetrate the skin for purposes such as drawing blood or administering medication.