Multiple Choice
The Canadian consumption function is given by C = 50 + 0.75 Y.This implies that
A) Canadians spend 75 percent of their income on average.
B) Each Canadian spends 75 percent of her/his income.
C) Canadians on average spend 75 cents out of each additional dollar earned.
D) Canadians spend 50 dollars of their income on average.
Correct Answer:
Verified
Correct Answer:
Verified
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