A Consumption Function of the Form C = Co

question 47

Multiple Choice

A consumption function of the form C = Co + cYD has a positive vertical intercept Co, which indicates that

• A)some consumption is unaffected by changes in disposable income
• B)the mpc will increase as disposable income increases
• C)the apc will always increase as disposable income increases
• D)the apc will always be less than the mpc
• E)all of the above

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Definitions:

American Federation

An organization or association formed for a specific purpose, potentially referring to labor, political, or other types of federations in the United States.

Samuel Gompers

An influential labor union leader who founded the American Federation of Labor (AFL) and played a key role in advocating for workers' rights in the late 19th and early 20th centuries.

Haymarket Bombing

A pivotal event in Chicago in 1886, where a bomb detonated during a labor rally, leading to riots and a trial that highlighted issues of workers' rights and law enforcement tactics.

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers regarding wages, working conditions, and rights.