Thank you for visiting Use the equation tex C c 0 c 1Y tex for the following question If current income in the US is 22 trillion the marginal. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!
Answer :
Final answer:
The amount of autonomous consumption is $4 trillion.
Explanation:
To calculate the autonomous consumption, we need to use the consumption function equation:
C = c0 + c1Y
Given that the total consumption (C) is $15 trillion, the current income (Y) is $22 trillion, and the marginal propensity to save (MPS) is 0.5, we can substitute these values into the equation:
$15 trillion = c0 + 0.5 * $22 trillion
To isolate c0, we can rearrange the equation:
c0 = $15 trillion - 0.5 * $22 trillion
Simplifying the equation:
c0 = $15 trillion - $11 trillion
c0 = $4 trillion
Therefore, the amount of autonomous consumption is $4 trillion.
Learn more about calculating autonomous consumption using the consumption function equation. here:
https://brainly.com/question/34439564
#SPJ14
Thank you for reading the article Use the equation tex C c 0 c 1Y tex for the following question If current income in the US is 22 trillion the marginal. We hope the information provided is useful and helps you understand this topic better. Feel free to explore more helpful content on our website!
- You are operating a recreational vessel less than 39 4 feet long on federally controlled waters Which of the following is a legal sound device
- Which step should a food worker complete to prevent cross contact when preparing and serving an allergen free meal A Clean and sanitize all surfaces
- For one month Siera calculated her hometown s average high temperature in degrees Fahrenheit She wants to convert that temperature from degrees Fahrenheit to degrees
Rewritten by : Jeany
