Refer to the information provided in Figure 23.11 below to answer the question(s) that follow. Figure 23.11
-Refer to Figure 23.11. [50 + 0.75Y] represents the
A) autonomous consumption function.
B) MPC.
C) aggregate expenditures function.
D) MPS.

Question

Refer to the information provided in Figure 23.11 below to answer the question(s) that follow.  Figure 23.11
-Refer to Figure 23.11. [50 + 0.75Y] represents the
A) autonomous consumption function. 
B) MPC. 
C) aggregate expenditures function. 
D) MPS.

Quizplus · Accepted Answer

[50 + 0.75Y] represents the aggregate expenditures function, which shows the total planned spending in an economy at a given level of income. The autonomous consumption function represents the amount of consumption that is independent of income, MPS represents the fraction of income that is saved, and the MPC represents the fraction of income that is spent.

Refer to the Information Provided in Figure 23