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The Consumption Function of the Income-Expenditure Model C = 10 + (0.8)Yd, C is consumption and Yd is disposable income (Y - T), I =

The Consumption Function of the Income-Expenditure Model

C = 10 + (0.8)Yd, C is consumption and Yd is disposable income (Y - T), I = 5

Fill in the following blanks:

1. What is the MPC?

2. Autonomous Consumption is

3. At Yd equal to 100, consumption spending is

4. At Yd equal to 100, saving is

5. Break-even disposable income is

6. The autonomous spending potential multiplier is

7. Equilibrium income is

8. Equilibrium income when I = 10 is

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