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The Consumption Function
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The Consumption Function
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15. Income and Consumption / The Consumption Function / Problem 3
Problem 3
Given the consumption function C = 0.7Y + 200, what does the number 200 represent?
A
The marginal propensity to consume.
B
The total consumption at maximum income.
C
The autonomous consumption when disposable income is zero.
D
The total savings at zero income.
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