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if the marginal propensity to consume is 0.5, individual autonomous consumption is $10,000, and disposable income is $40,000, then individual consumption spending is: group of answer choices $50,000.

Respuesta :

Using the example above, if the marginal propensity to consume is 0.5, individual autonomous consumption is $10,000, and disposable income is $40,000, then individual consumption spending is $300,000.

The percentage of a consumer's increase in overall pay that they choose to spend on goods and services rather than save is known as the marginal propensity to consume (MPC) in economics. The marginal propensity to consume, a concept found in Keynesian macroeconomic consumption theory, is determined by dividing the change in consumption by the change in income.

Given

Autonomous consumption is equal to $100,000 with a marginal propensity to consume of 0.5.

40000 as the disposable income consumption.

Spending on personal consumption =??

The formula below can be used to calculate a person's consumption function or spending.

C = A + MD

C = Personal Consumption

A is for autonomous consumption.

M stands for marginal consumption propensity.

Amount Available for Spending

C = A + MD

C = 10000 + (0.5 x 40000) (0.5 x 40000)

C = 10000 + 20000\sC = $30000

Hence $30000 will be spent on individual consumption.

Learn more about marginal propensity here

https://brainly.com/question/19089833

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