The Baseline Level of Consumption (C₀)

Multiple Choice

The baseline level of consumption (C₀)

A) is the amount by which consumption spending changes in response to a $1 change in total income.
B) is the amount households would spend on consumption goods if they had no income at all.
C) is the amount by which consumption spending changes in response to a $1 change in disposable income.
D) is the amount by which consumption spending would change in response to a $1 change in household wealth.