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

question 43

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)7.25

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Definitions:

Humility

The quality of having a modest or low view of one's importance, often enabling individuals to remain open to learning and respecting others.

Skepticism

An attitude of doubting the truth of something, such as a claim or statement.

Curiosity

A strong desire to learn or know something, drawing individuals towards novel and challenging experiences or information.

Empirical Approach

A method of inquiry that emphasizes evidence gathered through observation and experimentation rather than theory alone.