Given the consumption function C=$500bil + 0.8Y, an increase in disposable income from $6,000 billion to $7,000 billion will cause consumption to: A.increase by $1,000 bil. B.decrease by $800 bil. C.increase by $800 bil. D.decrease by $1,000.
Given the consumption function C=$500bil + 0.8Y, an increase in disposable income from $6,000 billion to $7,000 billion will cause consumption to: A.increase by $1,000 bil. B.decrease by $800 bil. C.increase by $800 bil. D.decrease by $1,000.
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 1.2P
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Given the consumption function C=$500bil + 0.8Y, an increase in disposable income from $6,000 billion to $7,000 billion will cause consumption to:
A.increase by $1,000 bil.
B.decrease by $800 bil.
C.increase by $800 bil.
D.decrease by $1,000.
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