Consider the Following Aggregate Expenditure Function: AE = $500 Billion

question 99

Multiple Choice

Consider the following aggregate expenditure function: AE = $500 billion + (0.75) Y.Assuming no government,no international trade,and desired investment is autonomous and equal to $120 billion,then which of the following is the correct statement of the consumption function?

• A)C = $620 billion + (0.75)Y
• B)C = $620 billion + (0.25)Y
• C)C = $500 billion + (0.75)Y
• D)C = $500 billion + (0.25)Y
• E)C = $380 billion + (0.75)Y

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Definitions:

Community Integration

The process of enabling individuals or groups to participate fully in the social, economic, and political activities of the society they live in.

Family Violence

Acts of violence and abuse by one family member against another, including physical, emotional, or sexual abuse.

Lower Income Strata

Socioeconomic segments of society that earn significantly less income than the average, often leading to limited access to resources.

Protective Services

government and non-government services designed to protect individuals, particularly children, the elderly, and the vulnerable, from abuse, neglect, and exploitation.