(Advanced analysis)If the equation C = 20 + .6Y,where C is consumption and Y is disposable income,were graphed:
A) the vertical intercept would be +.6 and the slope would be +20.
B) it would reveal an inverse relationship between consumption and disposable income.
C) the vertical intercept would be negative,but consumption would increase as disposable income rises.
D) the vertical intercept would be +20 and the slope would be +.6.

Question

Quizplus · Accepted Answer

The equation is in the form of Y = mx + b, where m is the slope and b is the vertical intercept. In this case, the coefficient of Y is the slope of the line, which is 0.6, and the constant term (20) is the vertical intercept. Therefore, the correct answer is D. Choice A is incorrect because the slope should be 0.6 and the vertical intercept should be 20. Choice B is incorrect because the equation shows a direct relationship between consumption and disposable income. Choice C is incorrect because the vertical intercept is positive.

(Advanced Analysis)If the Equation C = 20