If the consumption function is defined as C = 7,250 + 0.8Y, what is the autonomous level of consumption expenditure?
A)$1,425
B)$5,800
C)$7,250
D)$9,062.50
E)$9,700

Question

Quizplus · Accepted Answer

The autonomous level of consumption expenditure is the part that does not depend on income or output. In this case, it is the constant term in the consumption function, which is $7,250.

If the Consumption Function Is Defined as C = 7,250