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2 years ago

Suppose the consumption function is c = $200 + 0.85yd. if disposable income is $400, consumption is

2 answers:

8 0

Given the consumption equation of c= 200 + 0.85yd, and the disposable income of $400, then, then we would get the consumption by substituting the given to the equation:c= 200 + 0.85ydc= 200 + 0.85(400)c= 200 + 340c= 540Therefore, the consumption is $540.

pantera1 [17]2 years ago

3 0

$540 is the answer in this question. The formula of level of consumption is equal to autonomous consumption plus the disposable income multiplied by the MPC;
Disposal income = $400
MPC = .85YD
Autonomous consumption = $200

So the solution for this question is

.85 × 400 + 200 = 540.

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started 2700 units

Total 3,000 units

Equivalent units

physical materials conversion

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total 3,000 2,700 2,880

Cost to be accounted for:

materials conversion

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Total 0 11,376

Equivalent unis cost

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Cost assigned for:

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ending work in process units

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2 years ago

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2 years ago

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