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 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?
$850
$350
$750
$4,000

Answer 1

Answer:

$850

Explanation:

C = 100 + 0.75(1000)

=$850