emily4151
Answered

Discover the best answers at Westonci.ca, where experts share their insights and knowledge with you. Our Q&A platform provides quick and trustworthy answers to your questions from experienced professionals in different areas of expertise. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

If the consumption function is defined as C = 5,500 + 0.9Y, what is the
autonomous level of consumption expenditure?
A. $4,950
B. $5,500
C. $6,050
D. $6,111

Sagot :

Cricetus

Answer:

Option B ($5,500) is the appropriate choice.

Explanation:

The given expression is:

⇒  [tex]C = 5,500 + 0.9Y[/tex]

At the zero (0) level of income, the consumption would be the Autonomous consumption.

then,

Y = 0

On substituting the value of "Y" in the given expression, we get

⇒  [tex]C=5,500+0.9(0)[/tex]

⇒      [tex]=5,500+0[/tex]

⇒      [tex]=5,500[/tex] (%)

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.