Consider the Consumption Function in a Simple Macro Model with No

question 41

Multiple Choice

Consider the consumption function in a simple macro model with no taxes.At the level of national income where APC = 1,the nation's households are

• A)consuming all of their disposable income.
• B)allocating their income equally between saving and consumption.
• C)saving a portion of their income,but saving is less than consumption.
• D)spending more than their current income.
• E)saving all of their disposable income.

---

Definitions:

Amphibious Assault

A military operation that involves the use of naval ships to project ground and air power onto a hostile or potentially hostile shore at a designated landing beach.

U-Boats

Submarines used primarily by Germany, especially during World War I and World War II, for naval blockade and warfare.

Military Purposes

describes the use or application of resources, strategies, or actions to achieve defense or warfare objectives.

United States Aid

The financial or material assistance provided by the United States government to other countries, aimed at promoting economic development, welfare, or political stability.