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

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crystallisa00
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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