Question: You and a coworker have been trying to develop a linear equation that describes the local household consumption function. Your coworker has sent you a
You and a coworker have been trying to develop a linear equation that describes the local household consumption function. Your coworker has sent you a very short email that simply says he has finished the project and the consumption function is C = 100+ 0.75(YD). Your job is to explain this result to your supervisor. According to this consumption function, how much consumption spending would occur if a household had disposable income of $1,000? a) $4,000 b) $350 c) $850 d) $750
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