(Advanced Analysis) If the Equation C = 20 + 0

question 146

Multiple Choice

(Advanced analysis) If the equation C = 20 + 0.6Y, where C is consumption and Y is disposable income, were graphed,

• A) the vertical intercept would be +0.6 and the slope would be +20.
• B) it would reveal an inverse relationship between consumption and disposable income.
• C) the vertical intercept would be negative, but consumption would increase as disposable income rises.
• D) the vertical intercept would be +20 and the slope would be +0.6.

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