What is the level of autonomous consumption? What is the MPC? Whats MPC tell us?

label Economics
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

Real Disposable Income

Consumption

0

100

100

150

200

200

300

250

400

300

500

350

Oct 27th, 2014

C =100+0.5 Y

dC/dY = delta C /delta Y = 0.5

MPC = 0.5

It tells that consumption increases by 50 cents for each additional dollar of income.

Oct 27th, 2014

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Oct 27th, 2014
...
Oct 27th, 2014
Jun 28th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer