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If the Consumption Function Is Given by C = 150

Question 96

Multiple Choice

If the consumption function is given by C = 150 + 0.85(Y - T) and T increases by 1 unit, then savings:

A) decreases by 0.85 units.
B) decreases by 0.15 units.
C) increases by 0.15 units.
D) increases by 0.85 units.

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