If C = 10 + 0

question 206

Multiple Choice

If C = 10 + 0.7I - 0.2 is a consumption function,then the marginal propensity to consume and the marginal propensity to save when I = 25 are respectively given by

• A) 0.6 and 0.4.
• B) 0.68 and 0.32.
• C) 0.72 and 0.28.
• D) 0.8 and 0.2.
• E) 0.2 and 0.8.

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Definitions:

Natural Tendency

An inherent inclination or disposition in living organisms towards certain behaviors or patterns of growth and development.

Genuine Feelings

Authentic emotions and sentiments that an individual experiences without pretense.

Destinies

The predetermined, inevitable, or unchangeable futures of individuals, groups, or concepts, often conceptualized as a force or power that predetermines events.

Family Therapist

A mental health professional specializing in treating psychological, emotional, and behavioral issues within the context of family relationships.