If the Consumption Function Is Defined as C = 7,250

question 51

Multiple Choice

If the consumption function is defined as C = 7,250 + 0.8Y,what is the autonomous level of consumption expenditure?

• A)$5,800
• B)$7,250
• C)$9,062.50
• D)$9,700

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Definitions:

Financial Statements

Official documentation of a business, individual, or entity's financial condition and operations, normally comprising the income statement, balance sheet, and statement of cash flows.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activities into operating, investing, and financing.

Statement of Stockholders' Equity

A financial statement that shows changes in the value of a company’s equity over a specified period.

Income Statement

The income statement is a financial document that reports a company's financial performance over a particular period, showing revenues, expenses, and net income or loss.