If the Price of Gas Is $2

question 42

True/False

If the price of gas is $2.35 per gallon then the cost of filling a car's tank with gas is directly proportional to the number of gallons of gas purchased.

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Definitions:

Disposable Income

Disposable income refers to the amount of money that households have available for spending and saving after income taxes have been accounted for.

Aggregate Household Wealth

The total net worth held by the households in an economy, combining all assets minus liabilities.

Durable Goods

Things that last at least a year or two.

Nondurable Goods

Goods that are expected to last or be used for less than one year.