Refer to the information provided in Table 22.5 below to answer the question(s) that follow.
Table 22.5
$$\begin{array} { | c | c | }
\hline \text { Aggregate } \
\text { Income } ( Y ) & \begin{array} { c }
\text { Aggregate } \
\text { Consumption } ( C )
\end{array} \
\hline 6 & 12 \
\hline 12 & 15 \
\hline 24 & 22 \
\hline 42 & 30 \
\hline
\end{array}$$
-Refer to Table 22.5. Which of the following consumption functions best fits the values in the table?
A) C = 8 + 0.5Y
B) C = 3 + 0.75Y
C) C = 4 + 0.9Y
D) C = 5 + 0.8Y

Question

Refer to the information provided in Table 22.5 below to answer the question(s) that follow.
Table 22.5
 $$\begin{array} { | c | c | } 
\hline \text { Aggregate } \
\text { Income } ( Y ) & \begin{array} { c } 
\text { Aggregate } \
\text { Consumption } ( C )
\end{array} \
\hline 6 & 12 \
\hline 12 & 15 \
\hline 24 & 22 \
\hline 42 & 30 \
\hline
\end{array}$$
-Refer to Table 22.5. Which of the following consumption functions best fits the values in the table?
A) C = 8 + 0.5Y
B) C = 3 + 0.75Y
C) C = 4 + 0.9Y
D) C = 5 + 0.8Y

Quizplus · Accepted Answer

The consumption function C = 8 + 0.5Y fits the values in the table when you calculate consumption (C) for each level of aggregate income (Y) using this formula. For example, when Y = 6, C = 8 + 0.5(6) = 11, which closely matches the pattern in the table, considering a possible rounding or transcription error in the question's provided table.

Refer to the Information Provided in Table 22 -Refer to Table 22