Assume That the Consumption Function Is C = 200 Billion

question 45

Multiple Choice

Assume that the consumption function is C = 200 billion + 0.8Y. When Y equals $200 billion, then saving equals _______ billion.

• A) $- 100
• B) $140
• C) $0
• D) $- 160

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Definitions:

Division

A mathematical operation where one number (the dividend) is divided by another (the divisor), showing how many times the divisor fits into the dividend.

Division

A mathematical operation that represents dividing one number by another.

Polynomial

A mathematical expression consisting of variables and coefficients, that involves only the operations of addition, subtraction, multiplication, and non-negative integer exponents.

Factor

A number that divides another number exactly, without leaving a remainder, or the process of breaking down expressions into simpler components that can be multiplied together.