Suppose the Slope of the Consumption Function Is

question 6

Short Answer

Suppose the slope of the consumption function is .75 and there was an increase in income of $100. Calculate the increase in consumption.

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Definitions:

Jeweler

A person or business that designs, makes, sells, or repairs jewelry.

Clothing Store

A retail establishment that sells garments and apparel for men, women, and children.

Utility

Utility refers to the total satisfaction received from consuming a particular good or service.

Gasoline

A combustible, easily evaporated substance obtained from crude oil, primarily utilized as a propellant in internal combustion engines.