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Exhibit 10-7 -Here Is a Consumption Function: C = C0 + MPC(Yd).If

Question 153

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Exhibit 10-7
Exhibit 10-7 -Here is a consumption function: C = C<sub>0</sub> + MPC(Y<sub>d</sub>) .If MPC is 0.95,then we know that A) as Y<sub>d</sub> rises by $1, C<sub>o</sub> rises by $0.95. B) as Y<sub>d</sub> rises by $1, C rises by $0.95. C) Y<sub>d</sub> rises by $0.95. D) as C<sub>0</sub> rises by $0.05, Y<sub>d</sub> rises by $1.
-Here is a consumption function: C = C0 + MPC(Yd) .If MPC is 0.95,then we know that


A) as Yd rises by $1, Co rises by $0.95.
B) as Yd rises by $1, C rises by $0.95.
C) Yd rises by $0.95.
D) as C0 rises by $0.05, Yd rises by $1.

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