Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
- Autonomous consumption equals:
R0
R4m
R10 m
R16 m
R40 m
- Investment equals:
R4 m
R10 m
R12 m
R16 m
R40 m
![A (Rm)
A = Y
'A, = C+/
40
A = C
28
16
10
4
Y (Rm)
10
40
Study the above diagram and answer questions 6 to 8:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffd42a0d8-aee5-48bf-a3f9-e89e09ff4b6e%2F99ffbfc5-ed83-49bd-9b87-43c3250c6a79%2Ff5i2gkh_processed.png&w=3840&q=75)
Transcribed Image Text:A (Rm)
A = Y
'A, = C+/
40
A = C
28
16
10
4
Y (Rm)
10
40
Study the above diagram and answer questions 6 to 8:
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1
Autonomous consumption: - autonomous means independent, therefore, autonomous consumption is that level of consumption that is independent of the level of income and cannot be avoided because every person consumes something even if he does not have any income.
Investment spending: - it is the expenditure on the purchase of new capital goods.
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