Here Is a Consumption Function: C = C₀ + MPC(Y_d)

question 159

Multiple Choice

Here is a consumption function: C = C₀ + MPC(Y_d) .If consumption is $3,300,MPC =0.85,and disposable income is $2,100,what does autonomous consumption equal?

• A) $899.15
• B) $450
• C) $1,515
• D) $4,785
• E) none of the above

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Definitions:

Series Connection

An electrical circuit configuration in which components are linked in a sequential manner, so the same current flows through each component without branching.

Frequency Source

An electronic component or circuit that generates a specific frequency or range of frequencies, often used in telecommunications and signal processing.

Capacitive Reactance

The measure of a capacitor's opposition to changes in voltage, affecting AC flow without dissipating energy, inversely proportional to the frequency.

Series Connection

A type of circuit configuration where components are connected end-to-end, and the current flows through one component to get to the next.