Aggregate consumption equation

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Reference no: EM132264328

Scenario: Aggregate Consumption Equation

Suppose that the aggregate consumption function is given by the equation: C = 200 + 0.8 YD, where

C represents consumption and YD represents disposable income.

Reference: Ref 25-9

(Scenario: Aggregate Consumption Equation) According to the scenario Aggregate Consumption

Equation, if disposable income is $500, aggregate consumption is:

A. $600

B. $0

C.$200

D.$400

Reference no: EM132264328

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