What are the marginal propensity to consume and level of autonomous consumption spending for a consumption function of the following form: C = 1,200 + 0.5DI?
A) The marginal propensity to consume is 0.5;autonomous consumption spending is $0.50.
B) The marginal propensity to consume is 0.5;autonomous consumption spending is $1,200.
C) The marginal propensity to consume is 1,200;autonomous consumption spending is $0.50.
D) The marginal propensity to consume is 1,200;autonomous consumption spending is $600.
E) There is insufficient information to answer this.
Correct Answer:
Verified
Q41: If real disposable income increased by $10,000
Q42: If we know that the slope of
Q43: If expectations of future income become more
Q44: If real consumption spending increases by $400
Q45: If net taxes were lowered from $5,000
Q47: The marginal propensity to consume is always
A)
Q48: If the marginal propensity to consume is
Q49: If net taxes decrease,which of the following
Q50: If the interest rate increased,which of the
Q51: An upward shift of the consumption function
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents