If the Consumption Function Is Given by C = 150

question 89

Multiple Choice

If the consumption function is given by C = 150 + 0.85Y and Y increases by 1 unit, then saving:

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

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Definitions:

Inventory Cost

The total cost associated with acquiring goods for sale, including purchase price, taxes, and shipping.

Interchangeable

Items that are so similar in nature that they can be swapped or substituted for one another without affecting function or value, important in inventory management and manufacturing.

Goods Available

The total quantity of goods on hand at any time, including both inventory that is ready for sale and materials that will be used to produce goods.

Cost Of Goods

The total expense associated with producing goods, including raw materials and labor costs.