Suppose a consumption function is given as C = $500 + 0.75YD. The marginal propensity to consume is

A. 0.75.
B. -0.75.
C. 0.25.
D. 200.


Answer: A

Economics

You might also like to view...

When price is above the equilibrium level, competitive price cutting will continue as long as quantity supplied exceeds quantity demanded.

Answer the following statement true (T) or false (F)

Economics

Discuss why the World Bank has been criticized for making loans to nations that can attract private funds

What will be an ideal response?

Economics

If the domestic income of a nation’s citizens increase, then we might expect net export spending to:

A. increase. B. decrease. C. remain constant. D. there is not enough information to determine what would happen.

Economics

If a knowledge worker knows more than has manager it makes

A) sense to have a hierarchy organization. B) sense for the manager to closely monitor the employee. C) sense to promote the employee. D) no sense for the manager to monitor the employee.

Economics