Suppose there are three economies with 3 different consumption functions: Country A: C = 100 + 0.8Y Country B: C = 200 + 0.75 Y
Country C: C = 75 + 0.9Y
In which of these countries is autonomous consumption the largest?
A) Country C
B) Country B
C) Country A
D) All countries have the same autonomous consumption levels.

Question

Quizplus · Accepted Answer

Country B has the largest autonomous consumption at 200, compared to Country A's 100 and Country C's 75.

Suppose There Are Three Economies with 3 Different Consumption Functions