If Consumption Is Given by C = 200 + 0

question 38

Multiple Choice

If consumption is given by C = 200 + 0.75(Y - T) and investment is given by I = 200 - 25r, then the formula for the IS curve is:

• A) Y = 400 - 0.75T - 25r + G.
• B) Y = 1,600 - 3T - 100r + 4G.
• C) Y = 400 + 0.75T - 25r - G.
• D) Y = 1,600 + 3T - 100r - 4G.

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Definitions:

Salaried Employees

Workers who are paid a fixed regular amount by their employer, typically on a monthly or biweekly basis, regardless of hours worked.

Hourly Work

Work paid on an hourly basis.

Real Wages

The purchasing power of an individual's earnings, accounting for inflation.

Cost-Of-Living Increases

Adjustments to salaries or wages to offset the impact of inflation on purchasing power.