The Aggregate Consumption Function Is C = 100 + 0

question 267

Multiple Choice

The aggregate consumption function is C = 100 + 0.8Yd. If income is $600 and net taxes are zero, consumption equals

• A) zero.
• B) 360.
• C) 460.
• D) 580.

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Definitions:

Pleasant Consequence

A positive outcome or reward that follows a desired behavior, often used in reinforcing such behavior.

Positive Reinforcement

in behavioral psychology, it is the introduction of a rewarding stimulus following a desired behavior, encouraging its repetition.

Punish Openly

The act of enforcing a penalty or discipline in a public or transparent manner, often as a deterrent to others.

Successive Approximations

A method where a series of increasingly accurate estimates or steps lead to a desired response or outcome.