Business, 11.04.2020 04:03 miracle9704

You and a coworker have been trying to develop a linear equation that describes the local household consumption function. Your co-worker has sent you a very short email that simply says he has finished the project and the consumption function is: C = 225 + 0.75(YD). Your job is to explain this result to your supervisor. According to this consumption function, how much consumption spending would occur if a household had disposable income of $500?

A. $600
B. $850
C. $725
D. $800

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You and a coworker have been trying to develop a linear equation that describes the local household...