If the Marginal Propensity to Consume Is 0

question 89

Multiple Choice

If the marginal propensity to consume is 0.8, the marginal propensity to save is:

• A)​0.8
• B)​0.4
• C)​0.2
• D)​0.3

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Definitions:

Warranties

Legal guarantees from sellers that the product will meet certain quality and reliability standards, and offering repair or replacement if it does not.

High-Quality Goods

High-quality goods are products that meet or exceed customer expectations in terms of performance, durability, and satisfaction, often associated with higher standards of production and materials.

Product Quality

The characteristics and features of a product or service that bears on its ability to satisfy stated or implied needs.

Market Signaling

Process by which sellers send signals to buyers conveying information about product quality.