Asked by Ashley Elizabeth on Jul 18, 2024

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How much is induced consumption when disposable income is $400 billion?

Induced Consumption

The portion of consumer spending that varies with income. As income increases, consumers will spend more, and as income decreases, consumers will spend less.

Disposable Income

The financial capabilities households have for saving and spending endeavors post income tax deductions.

Consumption

The use of goods and services by households, including the acquisition of goods and services for personal use or ownership.

  • Determine induced consumption from disposable income and consumption patterns.
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GS
Gurpreet SinghJul 22, 2024
Final Answer :
$300 billion