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    Principles of Economics Study Set 12
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    Exam 2: Observing and Explaining the Economy
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    Suppose a Curve Shows That Every Time Family Income Increases
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Suppose a Curve Shows That Every Time Family Income Increases

Question 30

Question 30

Multiple Choice

Suppose a curve shows that every time family income increases by $1, spending increases by $.80. If spending increases by $100, then income increased by


A) $8.
B) $80.
C) $100.
D) $125.
E) $12.5.

Correct Answer:

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