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    Exam 10: Keynesian Macroeconomics and Economic Instability: A Critique of the Self-Regulating Economy
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    Exhibit 10-7 -Here Is a Consumption Function: C = C<sub>0</sub> + MPC(Y<sub>d</sub>).If
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Exhibit 10-7 -Here Is a Consumption Function: C = C0 + MPC(Yd).If

Question 102

Question 102

Multiple Choice

Exhibit 10-7
Exhibit 10-7    -Here is a consumption function: C = C<sub>0</sub> + MPC(Y<sub>d</sub>) .If C<sub>0</sub>= $300,then we know that A)  if Y<sub>d</sub> rises by $1, then Co rises by $1. B)  if Y<sub>d</sub> rises by $1, then C rises by $300. C)  as C<sub>0 </sub>rises by $15, C rises by $15. D)  as C<sub>0</sub> rises by $15, Yd rises by $15.
-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.

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