-Refer to Figure 11.2. Suppose that Ca = 40, MPC = 0.8, I = 10. The slope of the consumption function is
A) 0.1.
B) 0.2.
C) 0.8.
D) 0.9.

Name: -Refer to Figure 11.2. Suppose that Ca = 40, MPC = 0.8, I = 10. The slope of the consumption function is A) 0.1. B) 0.2. C) 0.8. D) 0.9.
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Question

-Refer to Figure 11.2. Suppose that Ca = 40, MPC = 0.8, I = 10. The slope of the consumption function is
A) 0.1. 
B) 0.2. 
C) 0.8. 
D) 0.9.

Quizplus · Accepted Answer

The slope of the consumption function is determined by the marginal propensity to consume (MPC), which in this case is 0.8.