On a graph with consumption on the vertical axis and disposable income on the horizontal axis, the slope of the line is
A)greater than 1.
B)equal to 1.
C)less than 1.
D)undefined.

Question

Quizplus · Accepted Answer

The slope of the line represents the change in consumption (vertical axis) for every unit change in disposable income (horizontal axis). Since the consumption function typically has a positive but less than one slope, the answer is C, which is less than 1.

On a Graph with Consumption on the Vertical Axis and Disposable