Multiple Choice
Autonomous consumption is 50. With every increase of one dollar in disposable income, consumption increases 60 cents. The marginal tax rate is 10 percent. The equation of the consumption function is
A) C = 50 + 0.6Y.
B) C = 50 + 0.54YD.
C) C = 50 + 0.5YD.
D) C = 50 + 0.06Y.
E) C = 50 + 0.54Y.
Correct Answer:
Verified
Correct Answer:
Verified
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