If the consumption function is C = 20 + 0.5YD, then an increase in disposable income by $100 will result in an increase in consumer expenditure by
A) $25.
B) $70.
C) $50.
D) $100.
C
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According to economists, an individual who tries to derive utility from the consumption of a good without paying for it is called:
a. a utility maximizer. b. a free rider. c. an opportunist. d. a profit maximizer.
The poverty rate _______ between 1993 and 2000 and _____ between 2001 and 2004.
A. fell; fell B. rose; rose C. fell; rose D. rose; fell
Suppose technology advances within a nation. Which curves in the aggregate demand and aggregate supply model would be affected, and which way would they shift?
Privatization of government agencies:
A. happens more frequently during recessions. B. has rarely occurred since the 1890s. C. has become less popular since the 1980s. D. has become more popular since the 1980s.