If the consumption function is given by C = 100 + 0.75(Y-T), then ...

[nummyann]

If the consumption function is given by C = 100 + 0.75(Y-T), then an increase of 10 units in taxes will cause the IS schedule to shift to the right by
 
  a. -30 units.
  b. -10 units.
  c. 30 units.
  d. 40 units.

Question 2

Saying the consumer is rational means
 
  A) the consumer is a stand-in for all consumers.
  B) the consumer is getting rationed.
  C) the consumer makes reasonable choices.
  D) the consumer makes the best choices.

[sultana.d]

Answer to Question 1

A

Answer to Question 2

D