The Aggregate Consumption Function Is C = 1,000 + 0

question 252

Multiple Choice

The aggregate consumption function is C = 1,000 + 0.9Yd. If income is $3,600 and net taxes are $600, consumption equals

• A) 2,400.
• B) 3,400.
• C) 3,700.
• D) 4,000.

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Definitions:

Encomienda

A labor system instituted by the Spanish crown during the colonial period in Latin America, allowing colonists to demand tribute and forced labor from the indigenous inhabitants.

Black Africans

Individuals originating from the African continent, particularly sub-Saharan Africa, characterized by dark pigmentation.

Bondage

The state of being a slave or the system by which individuals are treated as property to be bought, sold, and forced to work.

Columbus's Log

is the recorded journal by Christopher Columbus detailing his voyage across the Atlantic in 1492, which led to the European awareness and eventual colonization of the Americas.