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Gelneren [198K]
3 years ago
11

If the consumption function is defined as C = 5,500 + 0.9Y, what is the

Business
1 answer:
Nimfa-mama [501]3 years ago
8 0

Answer:

Option B ($5,500) is the appropriate choice.

Explanation:

The given expression is:

⇒  C = 5,500 + 0.9Y

At the zero (0) level of income, the consumption would be the Autonomous consumption.

then,

Y = 0

On substituting the value of "Y" in the given expression, we get

⇒  C=5,500+0.9(0)

⇒      =5,500+0

⇒      =5,500 (%)

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