If the Consumption Function Is Defined as C = 7,250

question 256

Multiple Choice

If the consumption function is defined as C = 7,250 + 0.8Y,what is the value of the marginal propensity to save?

• A)0.2
• B)0.8
• C)5.8
• D)9.1

---

Definitions:

Apparent Authority

Apparent authority refers to a situation where a third party is led to believe that an agent has the right to act on behalf of a principal, regardless of whether this is true.

Actual Authority

The explicit power given to an agent by a principal, enabling the agent to perform acts on behalf of the principal.

Taxable Income

The portion of an individual's or entity's income used to determine how much tax is owed to the government in a given tax year.

Federal Tax Return

The annual submission required by the federal government detailing an individual or entity's income, deductions, and tax liability.