Consider the Following Aggregate Expenditure Function: AE = $300 Billion

question 26

Multiple Choice

Consider the following aggregate expenditure function: AE = $300 billion + (0.87) Y.Assuming that we have no government,no international trade and desired investment is autonomous and is equal to $56 billion,then which of the following is the correct statement of the consumption function?

• A)C = $356 billion + (0.87)Y
• B)C = $356 billion + (0.13)Y
• C)C = $244 billion + (0.87)Y
• D)C = $244 billion + (0.13)Y
• E)C = $300 billion + (0.13)Y

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Definitions:

Social Inequality

Unequal chances and benefits are present for diverse social positions or statuses in a group or society.

Local Marriage Markets

Describes the social and economic factors that influence the dynamics of finding a marriage partner within a specific geographic area.

Potential Marriage Partners

Individuals considered eligible or suitable for marriage based on personal, social, or cultural criteria.

Compositional Factors

The elements or characteristics that combine to define a situation, group, or environment, often determining the outcome or nature of something.