The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy:
∙ marginal propensity to consume (mpc) = 0.75
∙ net tax rate (t) = 0.20
∙ no foreign trade
∙ fixed price level
∙ all expenditure and income figures are in billions of dollars. 
FIGURE 22-2
-Refer to Figure 22-2.Which of the following correctly describes the consumption function for this economy?
Definitions:
Groupthink
A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.
Encourage Doubt
To promote questioning or skepticism about certain beliefs or assumptions.
Directive Leadership
A leadership style characterized by providing clear instructions, setting goals, and closely supervising tasks to ensure they are completed as required.
Deindividuation
A psychological state characterized by reduced self-awareness and diminished social identity, often leading to disinhibited and impulsive behavior.
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