Let real GDP =Y = Y_d, and the consumption function is C = $1,000 + .06Y. What is the value of autonomous consumption (A) and what is the marginal propensity to consume (MPC)? A) A = $600; MPC = 0.4 B) A = $1,000; MPC = 0.6 C) A = $1,600; MPC = 2.5 D) A = $2,500; MPC = 0.6

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The consumption function is given as C = $1,000 + 0.06Y. Here, autonomous consumption (A) is the constant term, which is $1,000, and the marginal propensity to consume (MPC) is the coefficient of Y, which is 0.06.

Let Real GDP =Y = Yd, and the Consumption Function

Let Real GDP =Y = Y_d, and the Consumption Function