If the Slope of the Saving Function Is 0

question 237

Multiple Choice

If the slope of the saving function is 0.27, then the marginal propensity to

• A) import is less than 0.27.
• B) save is 0.73.
• C) consume is 0.73.
• D) consume is 0.27.

Understand how price acts as a rationing mechanism in free markets and the efficiency of this process.

Examine the unintended effects of economic policies, including price controls.

Realize the role of policymakers in influencing market outcomes through regulations like taxes and minimum-wage laws.

Identify and explain the mechanisms through which price controls are intended to protect consumers or producers.