Given the Equations for C, I, G, and NX Below

question 97

Multiple Choice

Given the equations for C, I, G, and NX below, what is the marginal propensity to save? C = 1,000 + 0.8Y
I = 1,500
G = 1,250
NX = 100

• A)0.1
• B)0.2
• C)0.8
• D)1.8
• E)10

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Definitions:

Liability

The state of being responsible for something, especially in terms of legal or financial obligations.

Creditors

Individuals or institutions to whom money is owed.

Cohesion

The tendency for a group to be in unity while working towards a goal or to satisfy the emotional needs of its members.

Social Class

A system of hierarchical social categories often determined by factors such as wealth, occupation, and education, which influence individuals' opportunities and life experiences.