Autonomous consumption is 50.With every increase of one dollar in disposable income, consumption increases 60 cents.The marginal tax rate is 10 percent.The equation of the consumption function is
A) C = 50 + 0.54YD.
B) C = 50 + 0.06Y.
C) C = 50 + 0.54Y.
D) C = 50 + 0.6Y.
E) C = 50 + 0.5YD.
Correct Answer:
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