Solved

Suppose the Consumption Function Is Given by the Equation C

Question 228

Multiple Choice

Suppose the consumption function is given by the equation C = 100 + 0.8YD, where YD is disposable income. What is the marginal propensity to consume?

A) 0.2
B) 0.8
C) 2.0
D) 100

Related Questions

Q223: The short-run multiplier is equal to 3,

Q224: A fall in the price level shifts

Q225: What is the marginal propensity to consume?

Q226: Because the short-run aggregate expenditure model assumes

Q227: Components of induced aggregate expenditure include government

Q229: A decrease in autonomous expenditure shifts the

Q230: Where the consumption function crosses the 45°

Q231: Aggregate expenditure equals<br>A) C + I +

Q232: If the slope of the AE curve

Q233: If there are no taxes or imports