The line described by the consumption function C = a + bY_D will change its slope when A)The MPC changes. B)Autonomous consumption changes. C)Disposable income changes. D)The APS changes.

Question

Quizplus · Accepted Answer

The slope of the consumption function is equal to the marginal propensity to consume (MPC), which is the change in consumption resulting from a change in disposable income. Therefore, when the MPC changes, the slope of the consumption function will also change.

The Line Described by the Consumption Function C = a