If the Consumption Function Is C = 20 + 0

question 101

Multiple Choice

If the consumption function is C = 20 + 0.8YD,then an increase in disposable income by $100 will result in an increase in consumer expenditure by

• A)$58.
• B)$64.
• C)$80.
• D)$100.

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Definitions:

Latent Learning

Learning that occurs without any obvious reinforcement of the behavior or associations that are learned.

Reinforcement

In behavioral psychology, a process in which a behavior is strengthened by the consequence that follows it, making it more likely to be repeated.

Performance

The action or process of carrying out or accomplishing an action, task, or function.

Learning

The act of gaining new insights, abilities, morals, or likes by means of learning, undergoing, or instructing.