The slope of the consumption function is equal to the level of autonomous consumption.

Question

Quizplus · Accepted Answer

The slope of the consumption function represents the marginal propensity to consume (MPC), which is the change in consumption resulting from a change in income. The level of autonomous consumption represents the amount of consumption that is independent of income, and is typically represented as the intercept of the consumption function. Therefore, the statement is false.

The Slope of the Consumption Function Is Equal to the Level