If the consumption function is defined as C = 5,500 + 0.9Y,what is the autonomous level of consumption expenditure?
A)$4,950
B)$5,500
C)$6,050
D)$6,111

Question

Quizplus · Accepted Answer

The autonomous level of consumption expenditure is the part of consumption that is independent of income. In the given consumption function, the autonomous level is the constant term 5,500. Therefore, the correct answer is option B) $5,500.

If the Consumption Function Is Defined as C = 5,500