If autonomous consumption (C_a) increases, the slope of the consumption function becomes steeper.

Name: If autonomous consumption (C a ) increases, the slope of the consumption function becomes steeper.
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Quizplus · Accepted Answer

The slope of the consumption function is determined by the marginal propensity to consume (MPC), not autonomous consumption. An increase in autonomous consumption shifts the consumption function upward but does not affect its slope.

If Autonomous Consumption (Ca) Increases, the Slope of the Consumption

If Autonomous Consumption (C_a) Increases, the Slope of the Consumption