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Which of the Following Represents the Consumption Function When MPC=0.4+0.1YM P C = 0.4 + \frac { 0.1 } { \sqrt { Y } }

Question 7

Multiple Choice

Which of the following represents the consumption function when
MPC=0.4+0.1YM P C = 0.4 + \frac { 0.1 } { \sqrt { Y } } , and C=50C = 50 when Y=100Y = 100 ?


A) 0.4Y+0.2Y+80.4 Y + 0.2 \sqrt { Y } + 8
B) 0.4Y+0.2Y+500.4 Y + 0.2 \sqrt { Y } + 50
C) 0.4Y+0.05Y+500.4 Y + 0.05 \sqrt { Y } + 50
D) 0.4Y−0.2Y+500.4 Y - 0.2 \sqrt { Y } + 50
E) 0.4Y−0.05Y+50.4 Y - 0.05 \sqrt { Y } + 5

Correct Answer:

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