If C = $3,000 + 0

Question 14

Multiple Choice

If C = $3,000 + 0.9Y and income is $20,000,

A) consumption is $20,000
B) consumption is $18,000
C) saving is $0
D) saving is -$1,000
E) income will increase to $200,000

Related Questions

Q7: If Y = C + I +

Q8: Consumption that is independent of the level

Q9: Equilibrium output equals autonomous spending multiplied by

Q10: If the marginal propensity to import increases,

Q11: Equilibrium output can be found by solving

Q12: Increases in consumption that result from increases

Q13: If the net export function is 500

Q15: If C = 10 + 0.8Y, a

Q16: The nation of Omega has an MPC

Q17: Investment is the only autonomous spending component