Given the Equations for C,I,G,and NX Below,what Is the Marginal

question 40

Multiple Choice

Given the equations for C,I,G,and NX below,what is the marginal propensity to save? C = 1,000 + 0.8Y
I = 1,500
G =1,250
NX = 100

• A)0.2
• B)0.8
• C)1.8
• D)10

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Definitions:

Exchange Rate

The price of one currency in terms of another, crucial in international finance as it determines how much one currency is worth in another.

Political Risk

The risk of losing money due to changes in a country's political environment or policy.

Foreign Operations

Business activities and transactions conducted in countries other than the company's home country.

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.