Question
Economics Question on Economics and economic theories
In an Economy, the value of multiplier is 4 times, and autonomous consumption is ₹30 crore. The relevant consumption function for this economy would be:
A
C = 30 + 0.75y
B
C = (-) 30 - 0.75y
C
C = 30 - 0.75y
D
C = 30 - 0.25y
Answer
C = 30 + 0.75y
Explanation
Solution
The correct option is (A): C = 30 + 0.75y