contestada

The marginal propensity to consume is 0.5, aggregate autonomous consumption is $10,000, and aggregate disposable income is $40,000. If disposable income is expected to increase, the aggregate consumption function might take the form of:

Respuesta :

jepessoa

Answer:

D) C= 12,000 + (40,000 x 0.5)

Explanation:

the current aggregate consumption function is C = 10,000 + (40,000 x 0.5)

  • aggregate autonomous consumption = 10,000
  • aggregate disposable income x 0.5 (MPC)

if the aggregate autonomous consumption increases, then the function would be:

  • C = 11,000 + (40,000 x 0.5)
  • C = 12,000 + (40,000 x 0.5)
  • C = 13,000 + (40,000 x 0.5)
  • C = 14,000 + (40,000 x 0.5)
  • etc...

So the only possible option is D