Multiple Choice
Exhibit 10-7
-Here is a consumption function: C = C0 + MPC(Yd) .If C0= $300,then we know that
A) if Yd rises by $1, then Co rises by $1.
B) if Yd rises by $1, then C rises by $300.
C) as C0 rises by $15, C rises by $15.
D) as C0 rises by $15, Yd rises by $15.
Correct Answer:

Verified
Correct Answer:
Verified
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