The equation C = 100 + 0,9Y, where C is consumption and Y is disposable income, tells us that …

Question

Accepted Answer

households will consume R100, if their disposable income is zero and will consume 0,9 of any increase in disposable income they receive.

Answer

households will consume 0,10 of whatever level of disposable income they receive.

Answer

households earn R100 and spend three quarters of their income.

Answer

households will save R75, if their disposable income is zero and will consume 0,9 of any increase in disposable income they receive.

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