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:

Constitutional Convention

A formal assembly of delegates with the purpose of drafting or revising a constitution or laws.

Producer Groups

Producer groups are associations or collectives of manufacturers, farmers, or businesses working in the same industry that advocate for their common economic interests, influence policy, and provide mutual support.

Collective Action Problem

A situation where individuals in a group have difficulty achieving a common goal because their best personal outcome does not align with the collective best.

Pluralist Theory

A political theory suggesting that power is distributed among many groups in a society, including interest groups, ensuring that no single entity has complete control.