If C = $3,000 + 0

question 14

Multiple Choice

If C = $3,000 + 0.9Y and income is $20,000,

• A)consumption is $20,000
• B)consumption is $18,000
• C)saving is $0
• D)saving is -$1,000
• E)income will increase to $200,000

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Definitions:

Receivables

Money owed to a company by its customers or clients for goods or services that have been delivered or used, but not yet paid for.

Maker

Maker often refers to an individual or entity responsible for creating or manufacturing something, often within contexts like craftsmanship, invention, or production.

Promising to Pay

A commitment or agreement by an individual or entity to fulfill a financial obligation at a future date.

Interest

The cost of borrowing money or the return that is earned on invested funds, typically expressed as an annual percentage rate.