The Wong family has a disposable income of $70,000 annually. Currently, the Wong family spends 80% of new disposable income on consumption. Assume that their marginal propensity to consume is 0.8 and that their autonomous consumption spending is equal to $10,000.
What is the amount of the Wong family's annual consumer spending?
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Home » Business » The Wong family has a disposable income of $70,000 annually. Currently, the Wong family spends 80% of new disposable income on consumption. Assume that their marginal propensity to consume is 0.