Australia's consumption function
A)has a positive slope.
B)has shifted upward over time.
C)has a slope of about 0.75.
D)All of the above answers are correct.

Question

Quizplus · Accepted Answer

Australia's consumption function typically has a positive slope, indicating that as income increases, consumption also increases. It has shifted upward over time due to factors like economic growth and increased income levels. The slope of about 0.75 suggests that for every additional dollar of income, consumption increases by 75 cents, which is consistent with empirical observations.

Australia's Consumption Function