Suppose that the linear equation for consumption in a hypothetical economy is C = 40 + .8Y.
Question:
(a) The marginal propensity to consume,
(b) The marginal propensity to save,
(c) The level of consumption,
(d) The average propensity to consume,
(e) The level of saving,
(f) The average propensity to save.
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Related Book For
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
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