The Disposable Income (DI) and Consumption (C) Schedules Are for a Private

question 16

Multiple Choice

The disposable income (DI) and consumption (C) schedules are for a private, closed economy. All figures are in billions of dollars. Refer to the data above. The marginal propensity to save in this economy is:

• A) .1
• B) .72
• C) .8
• D) .9

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Definitions:

Oil Price

The cost per barrel of crude oil, which fluctuates based on global supply and demand dynamics, geopolitical stability, and other factors.

Gasoline

A flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Lumber Price

The cost per unit volume of wood, a key commodity in construction and manufacturing.

Housing Market

The supply and demand for houses, often analyzed in terms of availability, prices, interest rates, and affordability within an area.