In the consumption function, what is autonomous consumption?

Value of C when Y = 0

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Value of C when Y = C

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Value of C when Y changes

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Value of C when Y is constant

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A
Value of C when Y = 0

Autonomous consumption is the value of C when Y = 0.

Suggest Corrections

Similar questions

Q. The consumption function of an economy is given as: C = 60 + 0.6Y. Draw a diagram showing consumption expenditure corresponding to income levels of 0, 100. 200. 300 and 400. (Values of Income and autonomous consumption are in Rs. crores).

Q. In an economy the autonomous investment is 60 and the marginal propensity to consume is 0.8. If the equilibrium level of Income is 400, then the autonomous consumption is 30. True or False? Justify your answer.
(False. The given value of autonomous consumption is Incorrect. The correct value is 20)

Find consumption when $¯ C = 100,$ MPC = 0.5 and Y = 2,000. Is there is greater increase in income as compared to consumption when income changes to 2,500?

Q. In a relation between variables 'a' and 'b', value of b changes when we change value of a. Select the correct option.

Q. On the basis of given diagram, answer the following questions:
(i) What is the value of autonomous consumption?
(ii) What is the break-even level of Income or at what level of income saving is zero?
(iii) How much is APC corresponding to point E?
(iv) If MPC = 0.6, determine the consumption and saving function.

Join BYJU'S Learning Program

In the consumption function, what is autonomous consumption?

The correct option is A Value of C when Y = 0 Autonomous consumption is the value of C when Y = 0.

The correct option is A
Value of C when Y = 0

Autonomous consumption is the value of C when Y = 0.