The slope of the consumption function
A) is undefined below the 45-degree line.
B) is negative.
C) equals the MPC.
D) is positive and equals 1 - MPC.

Name: The slope of the consumption function A) is undefined below the 45-degree line. B) is negative. C) equals the MPC. D) is positive and equals 1 - MPC.
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Question

Quizplus · Accepted Answer

The slope of the consumption function is equal to the marginal propensity to consume (MPC). Therefore, the correct answer is C, as the slope of the consumption function equals the MPC.

The Slope of the Consumption Function