Which of the Following Represents the Consumption Function Consistent with

question 134

Multiple Choice

$$\begin{array}{l}\begin{array} { | c | c | } \hline \begin{array} { c } \text { Disposable Income } \\\text { (Billions of dollars per year) }\end{array} & \begin{array} { c } \text { Total Consumption } \\\text { (Billions of dollars per year) }\end{array} \\\hline \$ 0 & \$ 50 \\\hline 200 & 210 \\\hline\end{array}\\\text { Table } 9.1\end{array}$$ Which of the following represents the consumption function consistent with the data in Table 9.1?

• A)C = $160 billion + 0.91Y_D.
• B)C = $160 billion + 0.80Y_D.
• C)C = $50 billion + 0.76Y_D.
• D)C = $50 billion + 0.80Y_D.

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Definitions:

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In physics, the movement of an object from one position to another or the volume displaced by an object in a fluid.

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Psychological strategies unconsciously used to protect a person from anxiety arising from unacceptable thoughts or feelings.

Regression

A statistical method used to model and analyze the relationship between a dependent variable and one or more independent variables.