If C = $3,000 + 0

question 5

Multiple Choice

If C = $3,000 + 0.9Y, which of the following will not be true?

• A)If income is less than $30,000, saving must be negative.
• B)If income is $30,000, then consumers are not saving.
• C)If income equals $40,000, saving must be $0.
• D)The marginal propensity to consume is 0.9.
• E)Autonomous consumption is $3,000.

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Definitions:

Break-even Analysis

A financial calculation to determine the point at which a business, product, or project will become profitable, by equating total revenues with total costs.

Single Product

Referring to businesses or production processes that focus on the manufacture or sale of one specific product.

Redesign

The process of changing or modifying the design of a product, service, or system to improve functionality or aesthetics.

Throughput

The time required to move orders through the production process, from receipt to delivery.