Suppose the Consumption Schedule Is: C = 20

question 122

Multiple Choice

Suppose the consumption schedule is: C = 20 + .9Y,where C is consumption and Y is disposable income.
-Refer to the above data.At an $800 level of disposable income,the level of saving is:

• A) $180
• B) $740
• C) $60
• D) $18

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Definitions:

Response

A reaction to a specific stimulus or situation.

Primary Reinforcer

A stimulus that is naturally rewarding or satisfying, such as food, water, or sleep, which does not require learning to be effective.

Food

Any nutritious substance that people or animals eat or drink, or that plants absorb, in order to maintain life and growth.

Most People

Generally refers to the majority of individuals in a population or group.