If the Consumption Function Is C = 25 + 0

question 92

Multiple Choice

If the consumption function is C = 25 + 0.9y and income increases by $100, then autonomous consumption spending will be

• A) $10.
• B) $25.
• C) $90.
• D) $115.

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Definitions:

Marketing Costs

Expenses related to promoting, selling, and distributing a product or service.

Design Costs

Expenses incurred during the planning and development phase of a product, including labor, materials, and overhead associated with creating the design.

Research and Development

Activities undertaken by companies or governments in innovation and improvement of services or products.

Cost of Goods Available

The total value of inventory available for sale, consisting of beginning inventory plus purchases or production costs.