Asked by Tishera Brooks on Jul 18, 2024

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How much is induced consumption?

Induced Consumption

Consumer spending that increases when income increases, and decreases when income decreases, not including autonomous consumption that doesn’t change with income.

Disposable Income

Financial capacity reserved for household spending and savings after navigating through income tax deductions.

Autonomous Consumption

The level of consumption expenditure that occurs when income levels are zero, representing the base level of spending that must occur even in the absence of income.

  • Calculate induced consumption given consumption, disposable income, and autonomous consumption.
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harshit vermaJul 24, 2024
Final Answer :
$3.5 trillion