Franco the Economist Uses Data for Canada to Estimate a Keynesian

question 17

Multiple Choice

Franco the economist uses data for Canada to estimate a Keynesian consumption function: C^d = 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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