Economics · Macroeconomics
Which of the following represents the correct formula for the consumption function, where C represents autonomous consumption, c represents marginal propensity to consume, and YD represents disposable income?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1C = C - cYD
- 2C = C × cYD
- 3C = C + cYD✓
- 4C = C / cYD
Correct answer
C = C + cYD
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