If the consumption function is defined as C = 7,250 + 0.8Y,what is the autonomous level of consumption expenditure?
A)$5,800
B)$7,250
C)$9,062.50
D)$9,700

Name: If the consumption function is defined as C = 7,250 + 0.8Y,what is the autonomous level of consumption expenditure? A)$5,800 B)$7,250 C)$9,062.50 D)$9,700
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Question

Quizplus · Accepted Answer

The autonomous level of consumption expenditure is the constant term in the consumption function, which is 7,250 in this case. Therefore, the answer is (B) $7,250.

If the Consumption Function Is Defined as C = 7,250