Given a Consumption Function of C = $25 + 0

question 27

Multiple Choice

Given a consumption function of C = $25 + 0.75Y_D,the average propensity to consume equals 1 when disposable income equals

• A)$25.
• B)$75.
• C)$100.
• D)-$300.

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Definitions:

Pleuritis

An inflammation of the pleura, the thin tissue layers surrounding the lungs, causing sharp chest pain.

Pleura

The thin membranes enveloping the lungs and lining the inside of the chest cavity, which help facilitate smooth lung movement during breathing.

Difficulty Breathing

A sensation of not being able to draw a deep breath or experiencing shortness of breath; a symptom of various medical conditions.

Fatty Substance

A general term for organic compounds that are insoluble in water but soluble in nonpolar solvents, including fats, oils, waxes, and certain vitamins.