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

question 9

Multiple Choice

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

• A)0.2
• B)0.8
• C)5.8
• D)7.25
• E)$1,425

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Definitions:

Specific Performance

A legal remedy requiring a party to perform their part of the contract rather than provide monetary compensation for failing to meet their obligations.

Resell

The act of selling something that one has previously purchased, either as a business practice or to transfer ownership.

In Transit

The status of goods or people being transported from one place to another; during the journey.

Carrier

A company or individual responsible for the transportation of goods or people.