Assume That Autonomous Consumption Equals $200 and That the Mpc

question 56

Multiple Choice

Assume that autonomous consumption equals $200 and that the mpc equals 0.8. If disposable income equals $1,000,then total consumption equals

• A)$80.
• B)$200.
• C)$800.
• D)$1,000.

---

Definitions:

Adjustable Rate

Interest rates that are variable and can change over the duration of a loan, typically in relation to an index or benchmark rate.

Contractual Obligations

Commitments that must be upheld as per the terms of a contract, ensuring all parties fulfill the agreed-upon requirements and conditions.

Liquidation

The process of winding up a company's operations, selling off its assets to pay off debts, and distributing any remaining assets to shareholders.

Treasury Stock

Shares that were once a part of the outstanding shares of a company's stock but were later repurchased by the company and are now held in the company’s treasury.