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Autonomous Consumption Is 50

question 141

Multiple Choice

Autonomous consumption is 50. With every increase of one dollar in disposable income, consumption increases 60 cents. The marginal tax rate is 10 percent. The equation of the consumption function is

Definitions:

Sole Proprietorship

A business structure where a single individual owns and operates the business, bearing full responsibility for its debts and obligations.

Hybrid Method

An accounting approach that combines elements of both the cash basis and accrual basis methods for financial reporting.

Deductible Expenses

Expenses eligible to reduce taxable income, subject to various tax rules and limitations.

Supplies Expenses

Costs incurred by a business for items that are used and consumed in the business operations, typically within a short period.