If the Consumption Function Is C = 200 + 0

question 176

Multiple Choice

If the consumption function is C = 200 + 0.75Y and there is a $10 million increase in consumption spending, then the aggregate demand curve will shift horizontally to the right by:

• A) $750 million.
• B) $7.5 million.
• C) $75 million.
• D) $40 million.

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Definitions:

Financial Security

A condition of having stable income or resources sufficient to meet current and future needs.

UCC

Stands for Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions.

Congress

The bicameral legislature of the Federal Government of the United States, consisting of the House of Representatives and the Senate.

Lost Profits

Financial gains that could have been earned but were not because of a specific event or action that prevented such earnings.