If the consumption function is C = 90 + 0.75y, then the marginal propensity to consume is

A) 0.2.5. B) 0.75. C) 67.5. D) 90.


B

Economics

You might also like to view...

The decision whether to work at any given wage is an application of the

A. scarcity principle. B. cost-benefit principle. C. principle of comparative advantage. D. principle of increasing opportunity cost.

Economics

Assets with zero covariance have yields that are

A) inversely related. B) positively correlated. C) negatively correlated. D) independent.

Economics

The curve that represents all possible combinations of goods that can be produced is called

A) the production possibilities curve. B) the resource allocation curve. C) the efficiency curve. D) the supply curve.

Economics

The total amount of income in a society is independent of how income is distributed.

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

Economics