Table 91 Which of the Following Represents the Consumption Function Consistent with
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question 102

Multiple Choice

Table 9.1 $$\begin{array} { | l | c | } \hline \begin{array} { c } \text { Disposable Income } \\\text { (Billions of dollars per year) }\end{array} & \begin{array} { c } \text { Total Consumption } \\\text { (Billions of dollars per year) }\end{array} \\\hline \text { \$0 } & \$ 50 \\\hline 200 & 210 \\\hline\end{array}$$ Which of the following represents the consumption function consistent with the data in Table 9.1?

• A)C = $160 billion + 0.91Y_D.
• B)C = $160 billion + 0.80Y_D.
• C)C = $50 billion + 0.76Y_D.
• D)C = $50 billion + 0.80Y_D.

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Definitions:

Cognitive Approach

A psychological perspective that focuses on how people perceive, think about, and mentally process the world around them.

Personality Differences

Variations in the emotional, attitudinal, and behavioral response patterns of individuals.

Sensitive-insensitive

A descriptor indicating variability in an individual's response to emotional or sensory stimuli, ranging from highly responsive (sensitive) to barely affected (insensitive).