In the equation PAE = A + bY, the independent part of the equation that depends on income is:
A) b.
B) Y.
C) A.
D) PAE.

Name: In the equation PAE = A + bY, the independent part of the equation that depends on income is: A) b. B) Y. C) A. D) PAE.
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Question

Quizplus · Accepted Answer

In the equation PAE = A + bY, the independent part of the equation is A. This is because it is not affected by changes in income (Y). It represents the autonomous or fixed components of aggregate expenditure. Therefore, the answer is A.

In the Equation PAE = a + BY, the Independent