Assume aggregate consumer spending equals $1,500 when aggregate disposable income is zero, and when disposable income increases from $0 to $1,000, consumer spending increases by $650. What is the equation for the aggregate consumption function? C = 1,500YD + 650 C = 0.65YD + 1,500 C = 650YD + 1,500 C = 0.75YD + 1,000

Assume aggregate consumer spending equals $1,500 when aggregate disposable income is zero, and when disposable income increases from $0 to $1,000, consumer spending increases by $650. What is the equation for the aggregate consumption function? C = 1,500YD + 650 C = 0.65YD + 1,500 C = 650YD + 1,500 C = 0.75YD + 1,000

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter18: The Keynesian Model

Section: Chapter Questions

Problem 9SQP

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