If the Consumption Function Is Expressed as C = a

question 112

Multiple Choice

If the consumption function is expressed as C = a + mpc × YD,then "a" represents

• A)autonomous consumer expenditure.
• B)the marginal propensity to consume.
• C)the expenditure multiplier.
• D)disposable income.

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Case Law

The collection of past legal decisions written by courts, which law later courts use as authoritative guidance in similar cases.

Legal Positivism

The school of jurisprudence which holds that because society requires authority, a legal and authoritarian hierarchy should exist. When a law is made, therefore, obedience is expected because authority created it.

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A school of jurisprudence that recognizes the existence of higher law, or law that is morally superior to human laws.

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Latin for “standing by the decision”; a principle stating that rulings made in higher courts are binding precedent for lower courts.