An economy is in equilibrium. Find Autonomous Consumption Expenditure :
An economy is in equilibrium. Find Autonomous Consumption Expenditure :
National Income = 1,600
Investment Expenditure = 300
Marginal Propensity to Consume = 0.8
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Y = C bar + MPC(Y) + I
1600 = C bar + 0.8(1600) + 300
C bar = 1600 - 1280 - 300 = 20
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