Suppose the Consumption Function Is C = $500 + 0

question 70

Multiple Choice

Suppose the consumption function is C = $500 + 0.8Y. If Y = $1,000, then autonomous consumption is

• A) $500.
• B) $800.
• C) $1,000.
• D) $1,300.

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Definitions:

Ending Inventory

The quantity and monetary value of unsold goods that a company has at the end of an accounting period, to be carried over as the beginning inventory of the next period.

FIFO

First-In, First-Out, an inventory management and valuation method where goods produced or acquired first are sold or used first.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, prior to any purchases or production taking place.

Current Year

Refers to the ongoing calendar or fiscal year, often used in accounting and reporting to denote the present period.