(Advanced Analysis) the Equation C = 35 + 0

question 154

Multiple Choice

(Advanced analysis) The equation C = 35 + 0.75Y, where C is consumption and Y is disposable income, shows that

• A) households will consume three-fourths of whatever level of disposable income they receive.
• B) households will consume $35 if their disposable income is zero and will consume three- fourths of any increase in disposable income they receive.
• C) there is an inverse relationship between disposable income and consumption.
• D) households will save $35 if their disposable income is zero and will consume three-fourths of any increase in disposable income they receive.

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Definitions:

Gilded Age

A period in late 19th-century America characterized by rapid economic growth, technological innovation, and ostentatious wealth, but also marked by social inequality and political corruption.

Skilled Workers

Workers having special knowledge, training, or ability in their field of work, often requiring extensive education or apprenticeship.

Production Process

The series of actions and operations involved in manufacturing goods and products, starting from the raw material stage to the final product.

Apprentices

Individuals, often young, who learn a trade or craft from a skilled employer, agreeing to work for a specified period in return for instruction.