In the IS curve model, the consumer demand can be represented by the following equation:
C = a + B(YT)
where C is consumption, Y is gross domestic product and T are taxes. Which of the following hold(s) ?
Select one or more:
a.The value of ß can be any number greater than 0
b. If household income increases by 1, consumption increases by
C.The value of a can be any number greater than 0
d. a represents consumption required to survive
e. Ca represents consumption for leisure
f. According to the equation, the interest rate can influence consumer demand
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