Suppose the Consumption Function Is C = $200 + 0

question 84

Multiple Choice

Suppose the consumption function is C = $200 + 0.85Y_D.If disposable income is $400,consumption is

• A)$200.
• B)$540.
• C)$340.
• D)$185.

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or providing services.

Journal Entry

A record in accounting that notes the details of a financial transaction in a company’s financial systems.

Raw Materials

Basic materials that are used in the production process to manufacture goods, often transformed or converted into the finished product.

Journal Entry

A record in the books of account that represents a transaction and its effect on the accounts, typically including a debit and credit.