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

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Definitions:

Trait-Based Approaches

Methods in psychology that focus on identifying and measuring specific qualities that differentiate individuals' personalities.

Personality Types

A classification of different patterns of behavior, thought, and emotion that define an individual's personal characteristics.

Personality Traits

Enduring characteristics that describe an individual's typical patterns of behavior, thinking, and feeling.

Personality Psychologists

Professionals who study the variations in personality among individuals, focusing on the construction, development, and assessment of human personality.