At which income level does consumption equal income in table 9.1?

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01-12-2018
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At which income level does consumption equal income in table 9.1?

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crystallisa00 crystallisa00 · Answer 1 · 2018-12-01T11:23:51+01:00

crystallisa00 crystallisa00

01-12-2018

Consumption equals disposable income when APC is equal to 1. Given the above consumption function of C = $50 + 0.8YD, and since the APC equals 1, then YD = C and you can substitute YD for C in the equation.

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