Suppose the Consumption Equation Is Represented by the Following: C

question 19

Multiple Choice

Suppose the consumption equation is represented by the following: C = 250 + .8YD.The multiplier for the above economy equals

• A)2)
• B)3)
• C)4)
• D)5)
• E) none of the above

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Definitions:

Adjusted Gross Income

The measure of one's taxable income, calculated as gross income minus allowable adjustments.

Deductible Contribution

A contribution to a qualified plan or account that is eligible to be deducted from the contributor's gross income for tax purposes.

Nonprofit Cemetery

A burial ground operated by an organization that does not seek to make a profit, often eligible for certain tax exemptions.

Schedule A

The section of the tax form 1040 used by taxpayers to itemize deductions.