The slope of the consumption function:
A)is vertical.
B)is horizontal.
C)equals 1.
D)equals the marginal propensity to consume.

Name: The slope of the consumption function: A)is vertical. B)is horizontal. C)equals 1. D)equals the marginal propensity to consume.
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Question

Quizplus · Accepted Answer

Marginal propensity to consume (mpc)is the change in consumption divided by the change in income. Graphically, this is the rise divided by the run of the consumption function, which is its slope.

The Slope of the Consumption Function