Use the Information Below to Answer the Following Questions

question 168

Multiple Choice

Use the information below to answer the following questions.
Fact 27.5.1
The economy of Beverly Hills has a consumption function of C = 10 + 0.8Y, investment equal to 6, government expenditure equal to 10, exports equal to 10, and an import function of M = 0.1Y.
-Refer to Fact 27.5.1. What is consumption expenditure in equilibrium in this economy?

• A)298
• B)106
• C)38.8
• D)114
• E)none of the above

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Definitions:

Nonmonetary Benefits

Advantages or perks received from a job, purchase, or transaction that do not involve financial compensation, such as satisfaction, convenience, or health improvements.

Monetary Benefits

The financial gains one receives from employment or investment, including salary, dividends, or interest.

Wholesalers

Businesses that sell goods in large quantities at lower prices, primarily to retailers or other businesses, rather than directly to consumers.

Retail Outlets

Physical stores that sell goods directly to the public for personal or household consumption, as opposed to wholesale transactions.