Consider the above figure. The equation for the consumption function is
A. C = 40 + 0.1Yd.
B. C = 40 + 0.33Yd.
C. C = 40 + 50Yd.
D. C = 40 + 60Yd.
Answer: B
You might also like to view...
A firm’s budget line shows a given expenditure on production, given the input prices for the production process.
Answer the following statement true (T) or false (F)
In the United States, approximately what percentage of the total income is earned by the highest 5 percent of the families?
a. 10 percent. b. 20 percent. c. 30 percent. d. 40 percent.
Suppose everyone in a town prefers spending on improved public transportation systems instead of public parks, and prefers spending on public parks instead of building a public zoo. A voting system that would ensure that zoo funding would never beat spending on transportation would demonstrate which criteria for an ideal voting system?
A. No dictator B. Transitivity C. Independence of irrelevant alternatives D. Unanimity
To increase total revenue, firms with ________ demand should lower price, and firms with ________ demand should increase price.
A. elastic; unit B. elastic; inelastic C. unit; inelastic D. inelastic; elastic