If the Equation C = 20

question 168

Multiple Choice

If the equation C = 20 + .6Y, where C is consumption and Y is disposable income, were graphed:

• A)the vertical intercept would be +.6 and the slope would be +20.
• B)it would reveal an inverse relationship between consumption and disposable income.
• C)the vertical intercept would be negative, but consumption would increase as disposable income rises.
• D)the vertical intercept would be +20 and the slope would be +.6.

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Definitions:

Distinguish

Differentiate or identify differences between two or more things.

Derivatives

Financial instruments whose value is derived from the value of an underlying asset, index, or interest rate.

Government Organizations

Entities established and funded by the government to perform specific functions or provide services aligned with government policies.

Impairment Testing

The process of evaluating assets for indications of reduced recoverability, assessing whether their carrying value exceeds their recoverable amount.