The marginal propensity to consume is 0.5, aggregate autonomous consumption is $10,000, and aggregate income is $40,000. If income is expected to increase, the aggregate consumption function might take the form:
A) C = 10,000 + (40,000 × 0.5)
B) C = 10,000 + (40,000 × 0.5) .
C) C = 12,000 + (40,000 × 0.5)
D) C = 12,000 + (40,000 × 0.5) .
E) C = 10,000 + (40,000 × 0.7) .
F) C = 10,000 + (40,000 × 0.7)
G) C = 10,000 + (42,000 × 0.5)
H) C = 10,000 + (42,000 × 0.5) .
Correct Answer:
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