If we consider the equation PAE = A + bY the independent part of the equation that depends on income is:
A) b
B) Y
C) A
D) PAE

Name: If we consider the equation PAE = A + bY the independent part of the equation that depends on income is: A) b B) Y C) A D) PAE
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Question

Quizplus · Accepted Answer

The constant term A represents the independent part of the equation that doesn't depend on income, while bY represents the dependent part that varies with changes in income. Therefore, A is the correct choice.

If We Consider the Equation PAE = a + BY the Independent