Suppose the Consumption Equation Is Represented by the Following: C

question 58

Multiple Choice

Suppose the consumption equation is represented by the following: C = 250 + .75YD,then private savings is

• A)-250+0.25YD.
• B)-250+0.75YD.
• C)-1000+0.25YD.
• D)-1000+0.75YD.

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Definitions:

Households

Units in an economy consisting of one or more people who live in the same dwelling and share meals or living accommodation, and may consist of a single family or some other grouping of people.

Aggregate Demand

Cumulative need for every type of good and service in an economy, observed at a consistent overall price point across a chosen period.

Money Supply

The total economic monetary resources present at a specific time.

Money Demand

The desired holding of financial assets in the form of money (cash and demand deposits) that can be easily exchanged for goods and services.