Suppose that someone has a disposable annual income of $50,000 and an MPC=0.8. They allocate $10,000 of that for necessities. The remainder of the income is both spent and saved. Based on this information autonomous consumption is:
A) $10,000.
B) $40,000.
C) $32,000.
D) $50,000.
Correct Answer:
Verified
Q43: Domestic income has a _ relationship with
Q44: Autonomous expenditure is spending that is:
A) based
Q45: If trade policies change, then we would
Q46: Autonomous expenditure is spending that is:
A) depends
Q47: If the foreign income decrease, then we
Q49: Net Exports are defined to be:
A) Imports
Q51: Foreign income is defined to be income
Q52: Which of the following is not a
Q52: If the domestic income of a nation's
Q53: If tastes for foreign goods and services
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