Autonomous Consumption Is 50

question 18

Multiple Choice

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

• A)C = 50 + 0.54Y
• B)C = 50 + 0.54YD
• C)C = 50 + 0.5Y
• D)C = 50 + 0.5YD

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