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

1. Describe the business you chose, and explain your reasons. Based upon what you know about it, what type of business do you think it is: a sole proprietorship
Why were students better able than adult to organize and protest?
In this excerpt, Ginsberg uses repetition to reinforce his idea that
In French, the expression huit jours refers to a week. Quinze hours refers
Which statement best describes the explanatory powers of hypotheses and theories?
a jumbo playing card has an area of 64 square inches and a perimeter of 32 inches.what are the dimensions of the playing card
Which of the following is an effect of Douglass's allusion to the biblical story of the sons of Ham? It establishes Douglass as a religious man. It establ
A cancer, acute lymphoblastic leukemia, is caused by chromosomal translocation. How does this condition arise?
cape horn is the southerneastmost tip of south america true or false
was the bell telephone company monopoly