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When considering how a family's level of consumption changes in response to changes in its income,...

When considering how a family's level of consumption changes in response to changes in its income,
A) income is the dependent variable and family consumption is the independent variable.
B) consumption is the dependent variable and income is the independent variable.
C) both of the variables are independent.
D) both of the variables are dependent.
E) there is no relationship between the variables.

Suppose Ahmoud would spend $1200 per year on travel, even if his annual income were zero. As his income rises, he would spend 20% of each additional dollar of income on travel. Choose the correct mathematical equation that describes the functional relation between his travel spending (T) and his income (Y).
A) Y = 1200 + 0.2T
B) T = 1200 + 0.2Y
C) Y = 1200 - 0.2T
D) T = 0.2 + 1200Y
E) T = 1200 + 0.8Y

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