find consumption expenditure from the following:

national income: 5000

autonomous consumption: 1000

marginal propensity to consume: 0.80

income (Y) =5000

autonomous consumption (a) =1000

MPC (b) =0.80

consumption function = a+b(Y)

i.e =1000+0.80(5000)

=1000+4000

=5000

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