Answer to Question #51156 in Macroeconomics for abdulla sabit
As C = Ca + c*Y:
1) Autonomous consumption is Ca = 600.
2) Marginal propensity to consume is c = 0.85;
3) When Y=1000, the induced consumption is 0.85*1000 = 850
4) If income is increased to 3000, the total consumption is C = 600 + 0.85*3000 = 3150
5) When income is 1000, the autonomous consumption is still 600.
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