If the Consumption Function Is C = 20 + 0

question 65

Multiple Choice

If the consumption function is C = 20 + 0.5YD,then an increase in disposable income by $100 will result in an increase in consumer expenditure by

• A)$25.
• B)$70.
• C)$50.
• D)$100.

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Definitions:

Fabric

A material made by weaving, knitting, pressing, or bonding that may be used in the production of clothing, household items, and other goods.

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A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.

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