The slope of the consumption function is
A)less than the slope of the 45° line.
B)greater than the slope of the 45° line.
C)equal to the slope of the 45° line.
D)one.
E)zero.

Question

Quizplus · Accepted Answer

The slope of the consumption function, which represents the marginal propensity to consume, is typically less than one, meaning it is less than the slope of the 45° line, which has a slope of one.

The Slope of the Consumption Function Is