The Aggregate Consumption Function Is C = 100 + 0

question 293

Multiple Choice

The aggregate consumption function is C = 100 + 0.6Yd. If income is $1,000 and net taxes are $300, consumption equals

• A) 800.
• B) 700.
• C) 580.
• D) 520.

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Definitions:

Authority

The legitimate or socially approved use of power within a given role, institution, or situation.

Subsistence groups

Communities or social groups that rely on natural resources and their immediate environment for their food, shelter, and clothing, often through hunting, gathering, fishing, or subsistence agriculture.

Distribution

The way in which something is shared out among a group or spread over an area.

Consumption

The process by which goods and services are utilized by individuals or groups to satisfy personal or collective needs or desires.