Here Is a Consumption Function: C = C₀ + MPC(Y_d)

question 53

Multiple Choice

Here is a consumption function: C = C₀ + MPC(Y_d) .If consumption is $3,000,MPC =0.80,and disposable income is $2,900,what does autonomous consumption equal?

• A) $100
• B) $5,900
• C) $680
• D) $500
• E) none of the above

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Definitions:

Challenge

A call to take part in a contest or competition, often requiring the overcoming of obstacles or tests of skill.

Negotiator's Approach

The specific method or style adopted by a negotiator to achieve desired outcomes during a negotiation process.

Danger

The possibility of harm, injury, loss, or any other negative outcome that is posed by a situation or activity.

Modify

To make changes or adjustments, often to an agreement or strategy, in response to new information or changing circumstances.