Use Table 10 $\text { Table } 10.3$ Which of the Following Represents the Consumption Function Consistent with the Price

question 91

Multiple Choice

Use Table 10.3,which shows the relationship between consumption and income.Assume the price level is constant. $\begin{array}{ll}\text { Disposal Income } & \text { Total Consumption }& \text { Investment }& \text { Total Expenditure }\\\text { (Billions per Year) }& \text { (Billions per Year) }& \text {(Billions per Year) }& \text { (Billions per Year) }\\\hline\$ 0 & \$ 200 & \$ 100 &\_\_\_\\200 & 300 & 100&\_\_\_ \\400 & 400 & 100&\_\_\_ \\600 & 500 & 100&\_\_\_\end{array}$

$\text { Table } 10.3$ Which of the following represents the consumption function consistent with Table 10.3?

• A)$100 billion + 0.75Y_D.
• B)$100 billion + 0.50Y_D.
• C)$200 billion + 0.75Y_D.
• D)$200 billion + 0.50Y_D.

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