If the consumption function is defined as C = 5,500 + .9Y, what is the autonomous level of consumption expenditure?
A) $6,050
B) $5,500
C) $4,950
D) $6,111

Question

Quizplus · Accepted Answer

The autonomous level of consumption expenditure is the part of consumption that does not depend on the level of income (Y). In the given consumption function C = 5,500 + .9Y, the autonomous consumption is $5,500, as it is the constant term in the equation.

If the Consumption Function Is Defined as C = 5,500