In the Consumption Function,suppose a = 60,c = 0

question 26

Multiple Choice

In the consumption function,suppose a = 60,c = 0.75,Y = 3000,and T = 800.Consumption expenditure is

• A)2910.
• B)2245.
• C)1710.
• D)1590.
• E)1510.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often entitling holders to dividends before common shareholders.

Earnings Per Share

A financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Cash Dividends

Distributions of a company's earnings to its shareholders in the form of cash.

Federal Income Tax

A tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.