Suppose the Consumption Function Is C = $500 + 0

question 57

Multiple Choice

Suppose the consumption function is C = $500 + 0.8Y. If Y = $1,000, what is the amount of consumption?

• A) $300
• B) $500
• C) $1,000
• D) $1,300

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Definitions:

Monetary Damages

Financial compensation awarded to a party in a lawsuit for losses or injuries suffered as a result of the defendant's actions.

Foreseeability

The concept that certain events may reasonably be predicted and thus potentially obligate parties to take preventative measures.

Certainty

The state of being free from doubt or ambiguity, often related to the clear understanding or predictability of an event or outcome.

Novation

The act of replacing an old obligation with a new one, substituting a new party for an original party in an agreement, with the consent of all parties involved.