Question

13. If the Keynesian consumption function is C = 10+ 0.8y then, and
disposable income is Rs 100, what is the average propensity to consume?
a) Rs 0.8
b) Rs 800
c) Rs 810
d) Rs 0.9​

Answer 1

In short, consumption equation C = C + bY shows that consumption (C) at a given level of income (Y) is equal to autonomous consumption (C) + b times of given level of income.

Use this equation to solve this question

. If the Keynesian consumption function is C = 10+ 0.8y then, and

disposable income is Rs 100, what is the average propensity to consume?

a) Rs 0.8

b) Rs 800

c) Rs 810

d) Rs 0.9

Answer 2

Answer:

d

Explanation:

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