The vertical intercept of the consumption function is used to determine the break-even level of real disposable income.

Question

Quizplus · Accepted Answer

The vertical intercept of the consumption function represents autonomous consumption, not the break-even level of real disposable income. The break-even level is where consumption equals income, typically found where the consumption function intersects the 45-degree line.

The Vertical Intercept of the Consumption Function Is Used to Determine