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...


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



Jun 11, 2022
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