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Use the Following to Answer Questions

Question 23

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Use the following to answer questions
Exhibit: Income and Consumption
Use the following to answer questions Exhibit: Income and Consumption -Let real GDP =Y = Y<sub>d</sub>, and the consumption function is C = $1,000 + .06Y. What is the value of autonomous consumption (A) And what is the marginal propensity to consume (MPC) ? A) A = $600; MPC = 0.4 B) A = $1,000; MPC = 0.6 C) A = $1,600; MPC = 2.5 D) A = $2,500; MPC = 0.6
-Let real GDP =Y = Yd, and the consumption function is C = $1,000 + .06Y.
What is the value of autonomous consumption (A)
And what is the marginal propensity to consume (MPC)
?


A) A = $600; MPC = 0.4
B) A = $1,000; MPC = 0.6
C) A = $1,600; MPC = 2.5
D) A = $2,500; MPC = 0.6

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