In a Linear Equation Relating Income and Consumption, You Know

question 153

Multiple Choice

In a linear equation relating income and consumption, you know that the intercept is $1,000 and the slope of the line is 4. If income is $20,000, then consumption is

• A) $8,000.
• B) $9,000.
• C) $10,000.
• D) $11,000.

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Definitions:

Cash

Liquid currency and coins, along with items of immediate bankability like checks, bank drafts, and money orders, considered a highly liquid asset.

Federal Income Tax

The tax levied by the Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.

FICA Taxes

Taxes required by the Federal Insurance Contributions Act, funding Social Security and Medicare, assessed on both employers and employees.

Child Maltreatment

The abuse or neglect of a child, including physical, emotional, or sexual harm, as well as the failure to provide for a child's basic needs.