If the Consumption Function Is C = 200 + 0

question 51

Multiple Choice

If the consumption function is C = 200 + 0.8Y,which of the following is true?

• A)This economy's consumption is 300 when income is 100.
• B)When income increases by 100,consumption increases by 90.
• C)This economy's consumption is 200 when income is 0.
• D)The marginal propensity to consume in this economy is .2.
• E)When income increases by 100,consumption increases by 20.

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Definitions:

Short-Term Memory

Short-term memory is a cognitive system that temporarily holds a limited amount of information in an active, readily available state for a short period of time, typically seconds to a few minutes.

Long-Term Memory

The phase of the memory process that is capable of storing information for prolonged periods of time, potentially indefinitely.

Implicit Memories

Memories that are not part of our consciousness, formed from behaviors learned through repetitive practice, such as riding a bike, and not consciously recalled.

Automatically Processed

Pertains to cognitive actions that occur without conscious awareness or effort, often based on learned routines or patterns.