Suppose the Consumption Function Is C = $200 + 0

question 142

Multiple Choice

Suppose the consumption function is C = $200 + 0.85Y_D.If disposable income is $400,consumption is

• A)$200.
• B)$540.
• C)$340.
• D)$185.

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Definitions:

Assembly Department

A part of a production facility where pieces are combined to form complete products.

Direct Labor-Hours

Direct labor-hours measure the amount of time workers or employees spend directly working on producing goods or providing services.

Departmental Predetermined Rate

A rate used to allocate overhead costs to products or services, calculated in advance and based on the estimated costs and activity levels of a specific department.

Assembly Department

A segment in manufacturing where components are assembled into finished products.