Suppose That the Consumption Function Crosses the 45-Degree Line at a Disposable

question 7

True/False

Suppose that the consumption function crosses the 45-degree line at a disposable income level of $800.Assume further that saving equals $200 when disposable income is $1, 300.This implies that the MPC must equal 0.6.

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Definitions:

Compelled Apology

An apology that is demanded or forced out of someone, often lacking in sincerity due to its coerced nature.

Expedient Apology

An apology made for the purpose of convenience or pragmatism, often to quickly resolve a conflict or reduce tension without full sincerity.

Sarcasm

A form of verbal irony that involves making a statement in which the actual meaning differs sharply from the words used, often to mock or convey contempt.

Informal Intervention

A non-official attempt to resolve a problem or conflict, typically involving personal or casual efforts rather than through formal channels.