Refer to the information provided in Figure 23.4 below to answer the question(s) that follow. Figure 23.4 -Refer to Figure 23.4. The aggregate consumption functions C₁ and C₂ A) have the same MPC values. B) imply different MPS values. C) have the same autonomous consumption values. D) have the same break-even values.

Question

Quizplus · Accepted Answer

Both consumption functions C1 and C2 having the same MPC (marginal propensity to consume) means they have the same slope, indicating that the change in consumption for a change in income is identical for both functions.

Refer to the Information Provided in Figure 23