Question

Give the meaning of autonomous consumption??


Let the consumption be C = 50 + 0.75 Y then calculate saving function?
​

Answer 1

hey!!

______

Answer:-

________

------>>>> It refers to minimum level of consumption.

example:-

__________

------->>> which is needed for survival.

------->>> consumption at zero level of national income.

_____________________________________

we know that:-

▪S = Y – C = Y - (50 + 0.75 Y).

▪– Y – 50 – 0.75Y.

▪S = -50 + Y(l-0.75) = -50 + 0.25Y.

hope help u!!

Answer 2

Heya ____

Answer ________

⚪ Meaning of autonomous consumption ________

Autonomous consumption is that consumption which don't depend on the income level of the consumer ....

It is indicated by C _ it is necessary for the survival of the life ...

⚪ Let the consumption be C = 50 + 0.75 Y then calculate saving function ____

Consumption function is :-

50 + 0.75 Y

Saving function is :-

S = -C + MPS Y

S = -50 + (1-0.75) Y

S = -50 + 2.5 Y

Thank you