The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy: • marginal propensity to consume (mpc) = 0.80
• net tax rate (t) = 0.15
• no foreign trade
• fixed price level
• all expenditure and income figures are in billions of dollars. 
FIGURE 22-3
Refer to Figure 22-3.Which of the following correctly describes the consumption function for this economy?
Definitions:
Political Corruption
The use of powers by government officials or their network contacts for illegitimate private gain, often undermining democracy and the rule of law.
Economic Woes
Issues and problems related to the economy, including inflation, unemployment, and recession.
Public Agenda
The set of policies or issues that are perceived by the political community as important and in need of attention and action.
Watchdog News
A type of journalism that focuses on exposing misconduct, corruption, and abuses of power in both public and private sectors.
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