When the consumption function is expressed as C = Ca + b (y- T) , taxes are collected by the government as:
A) a constant proportion of income y.
B) a decreasing proportion of income y.
C) an increasing proportion of income y.
D) a lumpsum, and independent of y.
Correct Answer:
Verified
Q35: Q36: If the consumption function is C = Q37: If an economy's marginal propensity to consume Q38: An increase in the marginal propensity to Q39: When the consumption function is expressed as Q41: If the consumption function is C = Q42: Q43: An unexpected increase in inventories has: Q44: If after adding investment (I) to the Q45: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A) no
