(Advanced Analysis)If the Equation for the Consumption Schedule Is C

question 92

Multiple Choice

(Advanced analysis) If the equation for the consumption schedule is C = 20 + .8Y,where C is consumption and Y is disposable income,then the average propensity to consume is 1 when disposable income is:

• A) $80.
• B) $100.
• C) $120.
• D) $160.

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Definitions:

Cost of Goods Sold

The direct expenses related to the production or purchase of products a company sells.

Molding

The process of shaping a malleable substance into a specific form using a rigid frame or mold.

Operating Statement

A financial document that provides a detailed account of a company's operating activities and expenses over a specific period, also known as an income statement or profit and loss statement.

Product Return

The process by which a customer returns a product to the seller for a refund or exchange.