In the equation C = C0 + C1 Yd, where C is planned consumption expenditure, Yd is disposable income, C0 is intercept or autonomous consumption (value of C when disposable income is zero), and C1 is marginal propensity to consume; which of the following is the endogenous variable?
A. C0
B. C1
C. C1 Yd
D. None of the above
Answer:C
In the equation C = C0 + C1 Yd, where C is planned consumption expenditure, Yd is disposable income, C0 is intercept or autonomous consumption (value of C when disposable income is zero), and C1 is marginal propensity to consume; which of the following is the endogenous variable?
A. C0 B. C1 C. C1 Yd D. None of the above