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

Q varies inversely as the square of p, and Q = 36 when p = 7. Find Q when p = 6. A. Q = 176 B. Q = 6 C. Q = 49 D. Q = 42 Please no guesses and I'd like to see
When is a Feature hypothesis fully evaluated?
PLEASE ANSWER ASAP *picture attached*
Help please, I’m confused and could you please explain the best you can do I understand? Thank you so much if you decide to help out :)
Choose the kind(s) of symmetry: point, line, plane, or none. point line plane none
4. 7G4 - M Kylie used wire fencing to form a border around a circular region in her back yard. If the diameter of the circular region was 5 yards, what was the
NEED HELP IN NUMBER 12 and 13 PLEASEEEE
Use a protractor to measure the angle formed by each pair of lines
why nitro group is called an ambident group?​
Which is a solution to the equation? (x - 3)(x - 5) = 35 x= -8 x=-5 x=2 x = 10