Franco the Economist Uses Data for Canada to Estimate a Keynesian

question 57

Multiple Choice

Franco the economist uses data for Canada to estimate a Keynesian consumption function:
Cᵈ₌ ₀.₄₆ ₊ ₀.₉₂Y
In this equation,what is the marginal propensity to consume?

• A)0.46
• B)0.50
• C)0.92
• D)1.38

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Definitions:

Endocrine

Relating to glands that secrete hormones directly into the blood rather than through a duct.

Exocrine

Pertains to glands that secrete their products through ducts directly into the external environment or onto body surfaces.

Endocrine Glands

Glands of the endocrine system that release hormones directly into the bloodstream.

Exocrine Glands

Glands that release their secretions through ducts either onto the exterior of the body or into the gastrointestinal tract.