Let the Consumption Function Be Given by C = 0

question 54

Multiple Choice

Let the consumption function be given by C = 0.85 + 0.8YDP with permanent disposable income specified according to YDP = 0.75YD +
0) 25YD-1) . Let there be a permanent $1,000 increase in income. Two years later, consumption will have increased by

• A) $1,000.
• B) $850.
• C) $800.
• D) Something between $600 and $800.
• E) $600.

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Definitions:

Pectinate Muscles

Internal ridges of myocardium in the atria of the heart.

Visceral Pericardium

The inner layer of the pericardium that closely envelopes the heart.

Epicardium

The outermost layer of the heart wall, also known as visceral pericardium, which provides lubrication and protection to the heart.

Endocardium

The innermost layer of tissue that lines the chambers and valves of the heart, providing protection and contributing to heart function.