Consider the General Form of the Consumption Function in a Simple

question 97

Multiple Choice

Consider the general form of the consumption function in a simple macro model.Once government and taxes are included in the model,desired consumption can be expressed as ________,where a = autonomous consumption,t = net tax rate,Y = national income, = disposable income,and MPC = marginal propensity to consume.

• A)C = a + MPC(1 - t)
• B)C = a - (1 - t)
• C)C = a + MPC ∙ Y
• D)C = a + MPC ∙ t ∙
• E)C = a + MPC(1 - t)Y

---

Definitions:

Straight Ranking

A method used in performance appraisals where employees are ranked in order from best to worst on some characteristic.

Sales Manager

A professional responsible for directing and overseeing a team of salespeople, setting goals, and developing strategies to increase sales performance.

Forced Distribution

A performance management system where employees are ranked in accordance with a pre-determined distribution curve.

Multiple Rater System

A feedback system typically used in performance assessments where several evaluators provide input on an individual's performance.