When the Consumption Function Is Expressed as C = Ca

question 124

Multiple Choice

When the consumption function is expressed as C = Ca + b (y- T) , taxes are collected by the government as:

• A) a constant proportion of income y.
• B) a decreasing proportion of income y.
• C) an increasing proportion of income y.
• D) a lumpsum, and independent of y.

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Definitions:

Labor Movement

A social and political movement advocating for the rights and interests of working people, often through unions and collective bargaining.

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Nonunion Replacement Workers

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The process where a union loses its legal rights to represent the employees in a workplace, usually through a vote by the affected workers.