Here is a consumption function: C = C 0 + MPC(Y d ).The C 0 term is usually defined as

The term C 0 represents autonomous consumption, which is the level of consumption that is independent of disposable income. It is not affected by changes in income and is determined by factors such as habit, attitudes, and expectations.

Here is a consumption function: C = C 0 + MPC(Y d ).The C 0 term is usually defined as

The term C 0 represents autonomous consumption, which is the level of consumption that is independent of disposable income. It is not affected by changes in income and is determined by factors such as habit, attitudes, and expectations.