Suppose the Consumption Function Is Given by the Equation C

question 228

Multiple Choice

Suppose the consumption function is given by the equation C = 100 + 0.8YD, where YD is disposable income. What is the marginal propensity to consume?

• A) 0.2
• B) 0.8
• C) 2.0
• D) 100

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Definitions:

Million Years Ago

A unit of time used in geology and paleontology to denote periods that are millions of years in the past from the present day.

Stromatolites

Layered bio-chemical structures formed in shallow water by the trapping, binding, and cementation of sedimentary grains by microorganisms, mainly cyanobacteria.

Mineralized Layers

Layers or deposits of organic or inorganic material that have been transformed into a solid, mineral-like substance over time.

Bacteria

Microscopic, single-celled organisms found everywhere on Earth, playing critical roles in both the environment and human health.