Advanced analysis) If the equation C = 20 + . 6Y , where C is consumption and Y is disposable income, were graphed:
A)the vertical intercept would be +. 6 and the slope would be +20.
B)it would reveal an inverse relationship between consumption and disposable income.
C)the vertical intercept would be negative, but consumption would increase as disposable income rises.
D)the vertical intercept would be +20 and the slope would be +. 6.
Answer:D
Advanced analysis) If the equation C = 20 + . 6Y , where C is consumption and Y is disposable income, were graphed:
A)the vertical intercept would be +. 6 and the slope would be +20. B)it would reveal an inverse relationship between consumption and disposable income. C)the vertical intercept would be negative, but consumption would increase as disposable income rises. D)the vertical intercept would be +20 and the slope would be +. 6.