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.

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Definitions:

Portfolio

A collection of investments held by an individual or institution.

Funds

Financial assets or resources that are available for a specific purpose or investment.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its risk level in comparison to the market average.

Expected Return

The weighted average of all possible returns, with weights equal to the probabilities of each outcome.