Suppose the Consumption Function Equaled C = 2

question 124

Multiple Choice

Suppose the consumption function equaled C = 2 + .7(Y - T) .If taxes increased by $10 billion,the expenditure line would shift

• A)down by $7 billion.
• B)up by $10 billion.
• C)up by $7 billion.
• D)down by $10 billion.
• E)down by $3 billion.

---

Definitions:

Western Settlement

The migration and establishment of communities and towns in the Western territories of the United States during the 19th century.

Civil War

A conflict between citizens of the same country, often referring to the American Civil War from 1861 to 1865 between Northern states (Union) and Southern states (Confederacy) over issues including slavery and states' rights.

U.S. Government

The federal government of the United States, composed of three branches: executive, legislative, and judicial, established by the Constitution to govern the country.

Fair Contracts

are legally binding agreements that are made in good faith, characterized by equality, respect, and honesty between all parties involved.