If the Consumption Function Is C = 200 + 0

question 51

Multiple Choice

If the consumption function is C = 200 + 0.8Y,which of the following is true?

• A)This economy's consumption is 300 when income is 100.
• B)When income increases by 100,consumption increases by 90.
• C)This economy's consumption is 200 when income is 0.
• D)The marginal propensity to consume in this economy is .2.
• E)When income increases by 100,consumption increases by 20.

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Definitions:

Production Quality

The standard of the final output or product, measured in terms of its craftsmanship, durability, and attention to detail.

White Space

The unmarked or empty areas in a design or layout, which can help to create a clean appearance and improve readability.

Haptics

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Poor Design Decisions

Choices made during the design process that negatively affect the usability, functionality, or aesthetic appeal of a product or service.