If the Consumption Function Is Defined as C = 5,500

question 191

Multiple Choice

If the consumption function is defined as C = 5,500 + 0.9Y,what is the marginal propensity to consume?

• A)0.1
• B)0.9
• C)5.5
• D)6.1

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Definitions:

Correlational Studies

Research methods that explore the relationship between two or more variables to determine if a statistically significant association exists, without assuming causality.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact, typically involving the manipulation of variables under controlled conditions.

Random Sample

A selection method where every member of a population has an equal chance of being included in the sample, decreasing bias in data collection.

Scientific

Relating to or based on the systematic and empirical study of the natural world through observation and experiment.