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:

Maslow

Refers to Abraham Maslow, an American psychologist who developed the hierarchy of needs theory, emphasizing the importance of self-actualization.

Personal Potential

The capacity for an individual to develop and achieve personal growth and improvement over time.

Metapathology

A thwarting of self-development related to failure to satisfy the metaneeds.

Maslow

Refers to Abraham Maslow, an American psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivation.