Which on is incorrect a) the level of autonomous consumption is determined by the non income determinants of consumption spending b) the impact of change in one or more of the non income determinants of consumption can be illustrated by a shift of the consumption function c)the level of autonomous consumption determines the position of the consumption function  D) investment spending is the most stable component of aggregate spending in the evonomy

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A: The correct solution is b.

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A: (a). Consumption function is C = bar(C) + c(Y - T) bar(C) = Autonomous consumption = 9000 c =…

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A: Given information: C = 100 + 0.7Y Y = 200

Q: (e) Suppose that this person earns 70,000 in 2021. What will their saving be in 2021?

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A: Definition of  Consumption Function : A consumption function shows  what is the consumption at…

Q: Elaborate three determninants in which consumption can be increased according to the consumption…

A: Consumption is characterised as utility acquisition spending.

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A: Hi! thanks for the question but as per the guidelines, we can answer only one question at one time.…

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Q: What is meant by "autonomous consumption"?

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A: Y = C + I +G + M  Y = (A* + b YD) + I* -lr + M Y = A* + b (Y - T* - tY ) + I* - lr + M* + mY Y = A*…

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Q: Create a diagram to explain the three main characteristics of the consumption function.

A: The consumption function shows the relationship between the consumption and level of income.

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A:

Q: Answer the questions on the basis of the information given in the following diagram: Guideline…

A: Marginal propensity to consume is the ratio of change in consumption and change in income level.

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A: An increase in the disposable income will become the cause of movement along with the consumption…