If we assume that government expenditure,investment,and net exports are not affected by income,the slope of the consumption function equals
A)APC.
B)The change in income divided by the change in consumption.
C)The slope of the aggregate expenditure curve.
D)APS.

Question

Quizplus · Accepted Answer

The slope of the consumption function is the marginal propensity to consume (MPC), which is the same as the slope of the aggregate expenditure curve when government expenditure, investment, and net exports are constant.

If We Assume That Government Expenditure,investment,and Net Exports Are Not