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:

Sales-type Lease

A lease agreement where the lessor transfers ownership of the asset to the lessee by the end of the lease term, often used in the financing of equipment.

Direct Financing Lease

A type of lease where the lessor purchases the leased asset specifically for leasing to the lessee, effectively providing finance to the lessee for the asset's purchase.

Collectibility

The likelihood or ability of a business to collect on its accounts receivable, reflecting the financial health and creditworthiness of its customers.

Minimum Lease Payments

The least amount of payments over the leasing period, including any residual value, guaranteed by the lessee under a lease agreement.