You are given the following consumption function C = 50 + .80YD.What is the amount of autonomous consumption expenditures?

Name: You are given the following consumption function C = 50 + .80YD.What is the amount of autonomous consumption expenditures?
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Quizplus · Accepted Answer

The autonomous consumption expenditures are the part of consumption that doesn't depend on income, in this case, it's the constant term (50). Therefore, the amount of autonomous consumption expenditures is $50. Option D is the correct answer.

You Are Given the Following Consumption Function C = 50