The Canadian Consumption Function Is Given by C = 50

question 54

Multiple Choice

The Canadian consumption function is given by C = 50 + 0.75 Y.This implies that

• A)Canadians spend 75 percent of their income on average.
• B)Each Canadian spends 75 percent of her/his income.
• C)Canadians on average spend 75 cents out of each additional dollar earned.
• D)Canadians spend 50 dollars of their income on average.

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Definitions:

Tend-and-Befriend Response

A behavior pattern where individuals provide care and protection under stressful situations, enhancing group safety and reducing vulnerability.

Fight-or-Flight Response

A physiological reaction to a perceived harmful event, attack, or threat to survival, preparing the body for rapid action.

Alarm Stage

The initial reaction of the body's stress response system, involving the activation of the sympathetic nervous system and the release of stress hormones.

Type A Behavior

A personality trait characterized by high levels of competitiveness, self-imposed stress, impatience, and aggression.