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Given a consumption function C = 10 + 0.6Y, determine the value of C if Y is 20

Given a consumption function C = 10 + 0.6Y, determine the value of C if Y is 20
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  • A 36.60
  • B 22.00
  • C 30.60
  • D 26.00
Correct Answer: Option B
Explanation:
Given C = 10 + 0.6Y when Y = 20
Substitute for the value of Y in the equation to calculate the actual value for C
Therefore, C = 10 + 0.6(20)
C = 10 + 12
C = 22.00

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