(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:

Fairness And Equality

The principles of treating people justly, without discrimination, and ensuring equal opportunities and rights for all members of society.

Postconventional

A stage in moral development where individuals' ethical principles guide their behavior, rather than societal norms or authorities.

Abstractly And Critically

Thinking in a way that is not tied to concrete realities and involves careful judgement and evaluation.

Postconventional

Pertains to a level of moral reasoning that is beyond social conventions, where actions are judged based on ethical principles rather than societal norms or expectations.