(Advanced Analysis)The Equation C = 35

question 85

Multiple Choice

(Advanced analysis) The equation C = 35 + .75Y,where C is consumption and Y is disposable income,shows that:

• A) households will consume three-fourths of whatever level of disposable income they receive.
• B) households will consume $35 if their disposable income is zero and will consume three-fourths of any increase in disposable income they receive.
• C) there is an inverse relationship between disposable income and consumption.
• D) households will save $35 if their disposable income is zero and will consume three-fourths of any increase in disposable income they receive.

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Definitions:

Operation Indicated

The execution of a computational or algebraic process as prescribed by mathematical or operational signs.

Collect Like Terms

A mathematical process of combining terms in an algebraic expression that have the same variables raised to the same power.

Operation Indicated

Refers to carrying out the arithmetic or mathematical operation that a particular problem or equation specifies.

Collect Like Terms

Collecting like terms is a process in algebra where terms with the same variables are summed or combined to simplify expressions.