Consider a Consumption Function of the Following Form: C =

question 73

Multiple Choice

Consider a consumption function of the following form: C = 50 + (0.6) Y_D.At what level of disposable income will desired savings be equal to zero?

• A)31.25
• B)50
• C)83.33
• D)125
• E)208.33

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Definitions:

Psychoanalytic

A method of psychology and therapy developed by Sigmund Freud, focusing on unconscious motives and conflicts.

Existential

Pertaining to existentialism, a philosophy that emphasizes individual freedom, choice, and existence.

Psychology

The systematic exploration of the human psyche and its operations, particularly those influencing actions within a specific situation.

1879

The year when the first psychological laboratory was established by Wilhelm Wundt, commonly regarded as the year psychology was founded as a science.