Question: The equation C = 1 0 0 + 0 , 9 Y , where C is consumption and Y is disposable income, tells us that
The equation where is consumption and is disposable income, tells us that
Select one:
a households will consume R if their disposable income is zero and will consume of any increase in disposable income they receive.
b households earn R and spend three quarters of their income.
c households will consume of whatever level of disposable income they receive.
d households will save R if their disposable income is zero and will consume of any increase in disposable income they receive.
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