$$\begin{array}{l}
\text { Disposable Income Consumption }\
\begin{array} { c c }
0 & \$ 1 \text { trillion } \
\$ 1 \text { trillion } & 1.5 \text { trillion } \
2 \text { trillion } & 2.0 \text { trillion } \
3 \text { trillion } & 2.5 \text { trillion } \
4 \text { trillion } & 3.0 \text { trillion }
\end{array}
\end{array}$$
-How much is induced consumption when disposable income is $4 trillion?

Question

$$\begin{array}{l}
\text { Disposable Income Consumption }\
\begin{array} { c c } 
0 & \$ 1 \text { trillion } \
\$ 1 \text { trillion } & 1.5 \text { trillion } \
2 \text { trillion } & 2.0 \text { trillion } \
3 \text { trillion } & 2.5 \text { trillion } \
4 \text { trillion } & 3.0 \text { trillion }
\end{array}
\end{array}$$
-How much is induced consumption when disposable income is $4 trillion?

Quizplus · Accepted Answer

Induced consumption is the part of consumption that changes with income. At $0 income, consumption is $1 trillion (autonomous consumption). At $4 trillion income, consumption is $3 trillion. The change in consumption ($2 trillion) from the autonomous level is the induced consumption.

-How Much Is Induced Consumption When Disposable Income Is $4