If the Consumption Function Is Defined as C = 5,500

question 212

Multiple Choice

If the consumption function is defined as C = 5,500 + 0.9Y,what is the autonomous level of consumption expenditure?

• A)$4,950
• B)$5,500
• C)$6,050
• D)$6,111

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Definitions:

Recorded Equity

The total amount of owners' equity recorded in the financial statements, representing the residual interest in the assets of a company after deducting liabilities.