-The above figure describes the relationship between consumption expenditure and disposable income. The equation of the consumption function is

Question

Quizplus · Accepted Answer

The consumption function typically takes the form C = a + bYD, where 'a' is autonomous consumption and 'b' is the marginal propensity to consume. Here, the equation C = 200 + 0.75YD indicates that autonomous consumption is 200 and the marginal propensity to consume is 0.75.

-The Above Figure Describes the Relationship Between Consumption Expenditure and Disposable