Question: 56) Suppose the consumption function is given by the equation C = 100 + 0.8 YD , where YD is disposable income. What is the

56) 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) 2.0

B) 100

C) 0.8

D) 0.2

61) ________ in the currency drain ________ the money multiplier.

A) An increase; increases

B) A decrease; decreases

C) A decrease; does not change

D) An increase; decreases

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