Here is a consumption function: C = C0 + MPC(Yd) .If C0 = $200,then we know that
A) if Yd is zero, C will be $200.
B) when Yd rises, C rises by $200.
C) when Yd falls, C falls by MPC times C0.
D) C will always equal C0.
Correct Answer:
Verified
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