Suppose the Consumption Equation Is Represented by the Following: C

question 49

Multiple Choice

Suppose the consumption equation is represented by the following: C = 250 + .75YD.Given this information,the marginal propensity to save is

• A) .25.
• B) .7.
• C) 1.
• D) 4.
• E) none of the above

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Definitions:

Middle-Class White

Refers to individuals of European descent who fall within the middle socioeconomic stratum of society, typically characterized by moderate levels of income and education.

African American Child

A child of African descent growing up in the United States, facing unique cultural, societal, and developmental experiences.

Heritability Ratio

A statistic that estimates the proportion of observed variance in a particular trait among individuals in a population that can be attributed to genetic differences.

Socioeconomic Status (SES)

The social standing or class of an individual or group, often measured as a combination of education, income, and occupation.