If the Consumption Function Is Given by C = 150

question 115

Multiple Choice

If the consumption function is given by C = 150 + 0.85(Y - T) and T increases by 1 unit, then savings:

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

---

Definitions:

National Security

The protection of a nation's citizens, economy, and institutions against threats and aggression, prioritizing the safety and well-being of the state.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.

Democrats

A member or supporter of the Democratic Party in the United States, known for its liberal policies on social issues and emphasis on government intervention in the economy.

Republicans

A member of the Republican Party, one of the two major contemporary political parties in the United States, often associated with conservative and right-leaning policies.