Assume That the Consumption Function Is Given by C =

question 152

Multiple Choice

Assume that the consumption function is given by C = 150 + 0.85(Y - T) and the tax function is given by T = t
+ t Y. If t
Increases by 1 unit, then consumption:
0 1 0

• A)decreases by 0.85 unit.
• B)decreases by 0.15 unit.
• C)increases by 0.15 unit.
• D)increases by 0.85 unit.

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Definitions:

Agreeableness

A personality trait characterized by qualities such as being kind, cooperative, and sympathetic towards others.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty or diligence.

Selective Optimization

A strategy of focusing on and optimizing key life domains for better overall functioning, often used in the context of aging.

Compensation Viewpoint

A perspective that suggests individuals may develop certain traits or behaviors as a way to compensate for or overcome disabilities or deficiencies.