Exhibit 10-7 -Here is a consumption function: C = C 0 + MPC(Y d ).If C 0 = $300,then we know that

C 0 is the autonomous consumption, which means it directly affects C. If C 0 rises by $15, C will also rise by $15, independent of Y d .

Exhibit 10-7 -Here is a consumption function: C = C 0 + MPC(Y d ).If C 0 = $300,then we know that

C 0 is the autonomous consumption, which means it directly affects C. If C 0 rises by $15, C will also rise by $15, independent of Y d .

Solved

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

Question 144

Multiple Choice

Exhibit 10-7
Exhibit 10-7 -Here is a consumption function: C = C<sub>0</sub> + MPC(Y<sub>d</sub>) .If C<sub>0</sub>= $300,then we know that A) if Y<sub>d</sub> rises by $1, then Co rises by $1. B) if Y<sub>d</sub> rises by $1, then C rises by $300. C) as C<sub>0 </sub>rises by $15, C rises by $15. D) as C<sub>0</sub> rises by $15, Yd rises by $15.
-Here is a consumption function: C = C₀ + MPC(Y_d) .If C₀= $300,then we know that

A) if Y_d rises by $1, then Co rises by $1.
B) if Y_d rises by $1, then C rises by $300.
C) as C₀rises by $15, C rises by $15.
D) as C₀ rises by $15, Yd rises by $15.

Correct Answer: