Refer to the information provided in Table 36.4 below to answer the question(s) that follow.
Table 36.4

-Refer to Table 36.4. Which of the following consumption functions best fits the values in the table?
A) C = 8 + 0.5Y
B) C = 3 + 0.75Y
C) C = 4 + 0.9Y
D) C = 5 + 0.8Y

Question

Refer to the information provided in Table 36.4 below to answer the question(s) that follow.
Table 36.4
 
-Refer to Table 36.4. Which of the following consumption functions best fits the values in the table?
A) C = 8 + 0.5Y 
B) C = 3 + 0.75Y 
C) C = 4 + 0.9Y 
D) C = 5 + 0.8Y

Quizplus · Accepted Answer

The consumption function C = 3 + 0.75Y best fits the values in the table as it reflects a base consumption of 3 and a marginal propensity to consume of 0.75, which aligns with the data provided.

Refer to the Information Provided in Table 36