Question

When C = 100 + 0.5Y and Y = 1,000, autonomous consumption will be:

• A. 100
• B. 1,000
• C. 500
• D. 600

Answer 1

The correct option is A

100

Autonomous consumption is the consumption which does not depend on income. In the given equation, when Y is zero, C = 100. Autonomous consumption is 100.