If the Consumption Function Is Defined as C = 5,500

question 193

Multiple Choice

If the consumption function is defined as C = 5,500 + 0.9Y,what is the value of the multiplier?

• A)0.1
• B)0.9
• C)9
• D)10

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Definitions:

Average

A statistical measure representing the central or typical value in a set of data, often calculated as the sum of the values divided by the number of values.

Increase in Value

The appreciation or growth in the worth of an asset or investment over time.

Future Value

The value of a current asset at a future date based on an assumed rate of growth over time, calculated using compounding interest.

Interest

The cost of borrowing money or the return on investing capital, typically expressed as a percentage rate.