Assume a Model with No Government, Where Consumption Is the Only

question 28

Multiple Choice

Assume a model with no government, where consumption is the only component of aggregate demand.If the consumption function is of the form C = 400 + (0.9) Y, what is the equilibrium level of consumption?

• A)400
• B)1)000
• C)1,600
• D)3,600
• E)4,000

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Definitions:

Power To Negotiate

The authority or capacity to discuss terms and reach agreements in a formal setting or transaction.

Holder

An individual or entity that legally possesses a negotiable instrument, such as a check or note, and has the right to execute or demand its fulfillment.

Forged Indorsement

This refers to an unauthorized signature on a negotiable instrument, such as a check, that falsely purports to be that of the named endorsee.

Non-Existent Employee

A fabricated or fictitious employee created on company records, usually for fraudulent purposes like embezzlement.