Question : What is the value of autonomous consumption from the following consumption function-
C=120+0.85Y and also determine consumption at Y=520.
Option 1: 200, 650
Option 2: 0.85, 650
Option 3: 0.15, 562
Option 4: 120, 562
Answer (1)
26th Jan, 2024
Correct Answer: 120, 562
Solution : C=120+0.85Y
Autonomous consumption- 120
b/MPC= 0.85
C=120+0.85(520)
C= 562
Hence, Option D is correct.
Comments (0)
