Assume a consumption function of the following form: C = 50 + .8Y. If income is equal to $1,000, then consumption is
A. $50
B. $1,050
C. $1,000
D. $850
Answer:D
Assume a consumption function of the following form: C = 50 + .8Y. If income is equal to $1,000, then consumption is
A. $50 B. $1,050 C. $1,000 D. $850