If the Consumption Function Is C = 20 + 0

question 103

Multiple Choice

If the consumption function is C = 20 + 0.8Y_D,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:

Institutional Labor Economics

A field of economics that studies labor markets and employment relationships, focusing on the roles of institutions like unions, regulations, and policies.

Perfectly Efficient

Describes a hypothetical state where resources are allocated in the most effective way possible, with no waste.

Unhealthy HR Practices

entails human resource strategies and actions that negatively impact employee well-being, morale, or legal rights, often leading to a toxic work environment.

Competitiveness

The ability of a person, company, or country to compete effectively and successfully in the market.