Answer to Question #36678 in Macroeconomics for Jon Smith

Question #36678

Suppose that the consumption function is: C = $500 + 0.8 × YD, where YD is disposable income.
Reference: Ref 11-5

(Scenario: Consumption Spending) The marginal propensity to save is:
A. $500.
B. 0
C. 0.8.
D. 0.2.

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