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a: autonomous consumption expenditure, that is, consumption that is independent of
consumer?s income.
b: marginal propensity to consume (mpc) which refers to the amount of the consumer?s
extra income devoted to consumption. It?s usually a fraction and less than 100%.
d: autonomous tax, that is, the amount that is independent of income paid as tax.
t: marginal propensity to tax, which refers to that portion of extra income paid as tax. It?s
normally in form of a fraction and, again, less than 100%.
Wilfykil answered the question on February 6, 2019 at 10:37
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