Table 9.1Disposable IncomeTotal Consumption(Billions of dollars per year)(Billions of dollars per year)$0$50200210Which of the following represents the consumption function consistent with the data in Table 9.1?
A. C = $160 billion + 0.91YD.
B. C = $50 billion + 0.80YD.
C. C = $50 billion + 0.76YD.
D. C = $160 billion + 0.80YD.
Answer: B
You might also like to view...
If the reserve requirement is 15 percent and a customer makes a new cash deposit of $50,000, how much new excess reserves are created?
a. $7,500 b. $33,000 c. $67,500 d. $42,500
Which statement is true?
A. Cost-push inflation may be summed up as "too many dollars chasing too few goods". B. Profit-push inflation is a variant of demand-pull inflation. C. Demand-pull inflation usually happens during wars. D. The wage-price spiral is the basic cause of demand-pull inflation.
If a large number of workers are classified as being out of the labor force when they are really looking for work, this will lead to an official unemployment rate that is:
A. overstated. B. understated. C. neither overstated or understated. D. unbiased.
In a perfectly competitive labor market, the labor supply curve facing the firm will be
A. upward sloping. B. vertical. C. horizontal. D. downward sloping.