You and a coworker have been trying to develop a linear equation that describes the local household consumption function. your coworker has sent you a very short email that simply says he has finished the project and the consumption function is c = 100 + 0.75(yd). your job is to explain this result to your supervisor. according to this consumption function, how much consumption spending would occur if a household had disposable income of $1,000?
$850
$350
$750
$4,000

The correct answer is command economy.

Explanation:

The planned or centralized economy is one in which the key questions of the economy about what, how and for whom to produce are resolved directly by the State.

The planned economy has as its main objective the equal distribution of income. For this, the State must intervene in the economy and take charge of the tasks of distribution of resources. They require the replacement of private property by the collective in the means of production, exchange and distribution. It is a type of economic system contrary to capitalism or market economy.