When we graph consumption as a function of ________ rather than as a function of disposable income,the slope of this consumption function is ________.
A)national income; the MPC
B)personal income; (MPC - MPS)
C)national income; the MPS
D)personal income; the MPS

Question

Quizplus · Accepted Answer

When we graph consumption as a function of national income, the slope of this consumption function is the marginal propensity to consume (MPC). This is because the MPC measures the change in consumption resulting from a change in national income.

When We Graph Consumption as a Function of ________ Rather