The aggregate consumption function is C = 200 + 0.9Yd. If income is $1,500 and net taxes are $300, consumption equals

Name: The aggregate consumption function is C = 200 + 0.9Yd. If income is $1,500 and net taxes are $300, consumption equals
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To find consumption (C), first calculate disposable income (Yd) by subtracting net taxes from income: Yd = $1,500 - $300 = $1,200. Then, plug Yd into the consumption function: C = 200 + 0.9($1,200) = 200 + 1,080 = $1,280.

The Aggregate Consumption Function Is C = 200 + 0