haileyglowiak2448 haileyglowiak2448
  • 02-03-2020
  • Business
contestada

Here is a consumption function: C = C0 + MPC(Yd). If consumption is $2,000, MPC =0.75, and disposable income is $2,000, what does autonomous consumption equal?

Respuesta :

ewomazinoade ewomazinoade
  • 04-03-2020

Answer:

$500

Explanation:

$2,000 = Co + 0.75 x $2,000

$2,000 = Co + $1,500

Co = $500

Autonomous consumption is consumption that would occur even if a person earns zero income. This consumption isn't dependent on the level of income.

MPC is the marginal propensity to consume. It represents the proportion of disposable income that is spent on consumption.

Disposable income is income less taxes.

I hope my answer helps you

Answer Link

Otras preguntas

Look People for some reason I can't find any questions for my history class so I have 7 questions for you off my unit test review so PLEASE HELP ME 100 POINTS!!
Question 16 Delaware was the first state that signed the Constitution. Noun Adverbial Relative
Write a recursive formula for an, the nth term of the sequence 18, 26, 34, .... a1= αη=
Spidernet, love, family ,house ,clock ,guess the malayalam movie,
when is the warworld 1​
the washing machine sounded​
Heike Onnes noticed that pure, solid _____ could be cooled to 4.2 K and have no resistance.
This note gets 1 1/2 beats in 4/4 time. A. Half note B. Quarter note C. Dotted half note D. Dotted quarter note
one bike cost $125.75 . What is the cost of 5 bikes?​
( I WILL MARK BRAINLIEST) please help