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Consider the General Form of the Consumption Function in a Simple

Question 41

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Consider the general form of the consumption function in a simple macro model.Once government and taxes are included in the model,desired consumption can be expressed as ________,where a = autonomous consumption,t = net tax rate,Y = national income, Consider the general form of the consumption function in a simple macro model.Once government and taxes are included in the model,desired consumption can be expressed as ________,where a = autonomous consumption,t = net tax rate,Y = national income, = disposable income,and MPC = marginal propensity to consume. A) C = a + MPC(1 - t) B) C = a - (1 - t) C) C = a + MPC ∙ Y D) C = a + MPC ∙ t ∙ E) C = a + MPC(1 - t) Y = disposable income,and MPC = marginal propensity to consume.


A) C = a + MPC(1 - t) Consider the general form of the consumption function in a simple macro model.Once government and taxes are included in the model,desired consumption can be expressed as ________,where a = autonomous consumption,t = net tax rate,Y = national income, = disposable income,and MPC = marginal propensity to consume. A) C = a + MPC(1 - t) B) C = a - (1 - t) C) C = a + MPC ∙ Y D) C = a + MPC ∙ t ∙ E) C = a + MPC(1 - t) Y
B) C = a - (1 - t) Consider the general form of the consumption function in a simple macro model.Once government and taxes are included in the model,desired consumption can be expressed as ________,where a = autonomous consumption,t = net tax rate,Y = national income, = disposable income,and MPC = marginal propensity to consume. A) C = a + MPC(1 - t) B) C = a - (1 - t) C) C = a + MPC ∙ Y D) C = a + MPC ∙ t ∙ E) C = a + MPC(1 - t) Y
C) C = a + MPC ∙ Y
D) C = a + MPC ∙ t ∙ Consider the general form of the consumption function in a simple macro model.Once government and taxes are included in the model,desired consumption can be expressed as ________,where a = autonomous consumption,t = net tax rate,Y = national income, = disposable income,and MPC = marginal propensity to consume. A) C = a + MPC(1 - t) B) C = a - (1 - t) C) C = a + MPC ∙ Y D) C = a + MPC ∙ t ∙ E) C = a + MPC(1 - t) Y
E) C = a + MPC(1 - t) Y

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