If we graph the consumption function such that it starts above the origin,this is because we are assuming that

Question

Quizplus · Accepted Answer

The consumption function represents the relationship between income and consumption. If the consumption function starts above the origin, it means that at zero income, there is still positive consumption. This represents autonomous consumption, which is consumption that does not depend on income. Therefore, the correct choice is C - autonomous consumption is positive.

If We Graph the Consumption Function Such That It Starts