The Aggregate Consumption Function Is C = 100 + 0

question 267

Multiple Choice

The aggregate consumption function is C = 100 + 0.8Yd. If income is $600 and net taxes are zero, consumption equals

• A) zero.
• B) 360.
• C) 460.
• D) 580.

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Definitions:

Short-Term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period of time.

Working Memory

The part of short-term memory that is concerned with immediate conscious perceptual and linguistic processing.

Long-Term Memory

The ability to store information for extended periods, often throughout an individual's life, distinguished from short-term or working memory.

Procedural Memory

A type of long-term memory involved in the acquisition of motor skills and habits, responsible for knowing "how" to do things.