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Here Is a Consumption Function: C = C0 + MPC(Yd)

Question 6

Multiple Choice

Here is a consumption function: C = C0 + MPC(Yd) .If MPC is 0.80,then we know that


A) as Yd rises by $1,Co rises by $0.80.
B) as Yd rises by $1,C rises by $0.80.
C) Yd rises by $0.80.
D) as C0 rises by $0.80,Yd rises by $1.

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