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

question 269

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

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Definitions:

Cost Leadership Strategy

A competitive strategy where a company aims to become the lowest cost producer in its industry to offer products or services at a lower price than its competitors.

Corporate Vision

A statement that outlines an organization's long-term aspirations and goals, guiding its future direction.

Resale Price Maintenance

An agreement between a manufacturer and its distributors to sell a product at a specified minimum price.

Price-Fixing

An illegal agreement between parties to set prices at a specific level, often higher than what would be set through free-market competition, to control or manipulate the market.