Multiple Choice
Which of the following statements is true concerning the consumption function?
A) It slopes upward.
B) Its slope equals the MPC.
C) It represents the direct (positive) relationship between consumption spending and the level of real disposable income.
D) If the consumption function lies above the 45-degree line then saving is positive.
E) All of these.
Correct Answer:
Verified
Correct Answer:
Verified
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Q108: Exhibit 8-6 Aggregate expenditures function <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg"
Q110: Exhibit 8-11 Consumption function <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg" alt="Exhibit
Q111: Exhibit 8-4 Disposable income and consumption data<br><img
Q112: The change in consumption divided by a
Q114: Exhibit 8-5 Consumption function <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg" alt="Exhibit
Q116: Exhibit 8-4 Disposable income and consumption data<br><img
Q117: Autonomous consumption is equal to the level