If Consumption Is Defined as C = 2,000 + 0

question 14

True/False

If consumption is defined as C = 2,000 + 0.8Y,then the marginal propensity to save is 0.8.

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Definitions:

Monopolist

An entity that is the sole provider of a particular product or service in a market, possessing significant market power and control over prices.

Output

The amount of goods or services produced by a person, machine, factory, or company within a certain period.

Demand Schedule

A diagram indicating the volume of goods or services that consumers can and will buy at assorted prices.

Marginal Cost

The investment needed to make an extra unit of a good or service.