Assume the following estimates: Autonomous consumption: $1,625 billion Disposable income: $11,500 billion Using the consumption function in
Question:
Assume the following estimates:
Autonomous consumption: $1,625 billion Disposable income: $11,500 billion Using the consumption function in Equation 2, calculate consumption expenditure if an increase of $1,000 in disposable income leads to an increase of $750 in consumption expenditure.
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Jehal Shah
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