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@ Take a Test ernet Explorer https//www t/PlayerTest.aspx testld 1731584348 centerwin yes Econ 3001 Wintersession 2017/2018 1/6/18 1:45 PM Quiz: Quiz Chapter 20 This Question: 1 pt Submit Qutz This Quiz: 32 pts possil Question Heip * 25 of 32 (14 complete) Assume that autonomous comsumption is $1,739 blion and daposable lecome is $12.100 bilion Using the consumption function, caloudate consumption expendture i anhoeased\'s100indeposable icone leads to anndrease od sne is consumption expendire consumption e perdue is S bilin (Enter your ne pense as a whin Meer)

Solution

Autonomous consumption is such consumption which is invariant of disposable income that is when the level of disposable income is 0 then the consumption that happens is called Autonomous

Now in this example we have Autonomous Consumption is $1739 bn which says as per the definition when disposable income is zero then the consumption is $1739 bn. We know that for each $1000 income Consumption expenditure increase by $730 and we have disposable income equals to $12100 bn therefore consumption expenditure will be (12100/1000)×730=12.1×730=$ 8833 bn