Income and Consumption
Average Propensity to Consume and Save
Income and Consumption
Average Propensity to Consume and Save
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Average Propensity to Consume and Save
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Problem
ProblemIf the Keynesian consumption function is C = 10 + 0.8 Yd then, when disposable income is $1000, what is the average propensity to consume?
A
$0.8
B
$800
C
$810
D
$0.81
E
Cannot be determined
3
Problem
ProblemIf the Keynesian consumption function is C = 10 + 0.8 Yd then, when disposable income is $1000, what is the marginal propensity to save?
A
0.8
B
0.81
C
0.19
D
0.2
E
Cannot be determined