If Income Increases by $100 and Consumption Increases by $75,the

question 168

Multiple Choice

If income increases by $100 and consumption increases by $75,the slope of the consumption function equals

• A)1/4
• B)1/5
• C)1/2
• D)3/4
• E)3/5

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Definitions:

Bound By Contracts

A phrase indicating that parties are legally obligated to adhere to the terms outlined in a contract they have entered into.

Presumed

Accepted as true or valid based on the evidence until proven otherwise.

Primary Obligation

The main or fundamental duty that a party is required to perform under a contract.

Debtor

An individual or entity that owes money or other obligations to another party, known as the creditor.