(Advanced Analysis)If the Equation C = 20

question 15

Multiple Choice

(Advanced analysis) If the equation C = 20 + .6Y,where C is consumption and Y is disposable income,were graphed:

• A) the vertical intercept would be +.6 and the slope would be +20.
• B) it would reveal an inverse relationship between consumption and disposable income.
• C) the vertical intercept would be negative,but consumption would increase as disposable income rises.
• D) the vertical intercept would be +20 and the slope would be +.6.

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