The U.S. consumption function
A) has a positive slope.
B) has a slope of about 0.9.
C) has shifted upward over time.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

The U.S. consumption function has a positive slope, indicating that as income increases, so does consumption. The slope is typically around 0.9, meaning that for every $1 increase in income, consumption increases by 90 cents. The consumption function has also shifted upward over time, reflecting increases in overall income and changes in consumer behavior. All of these statements are true, making choice D the correct answer.

The U.S. Consumption Function