Given the Keynesian consumption function C = 10 + 0.8 Td, what is the total consumption when disposable income (Td) equals Rs 1000?
Explanation
Using the consumption function C = 10 + 0.8 × 1000, total consumption equals 10 + 800 = 810.
Using the consumption function C = 10 + 0.8 × 1000, total consumption equals 10 + 800 = 810.