The slope of the consumption function is
A) equal to the MPC and is less than 1.
B) equal to the MPC and is greater than 1.
C) equal to the MPC and is equal to 1.
D) not equal to the MPC and is equal to 1.
E) not equal to the MPC and is less than 1.
Correct Answer:
Verified
Q21: On a graph of the consumption function,
Q22: On a graph of the consumption function,
Q23: If your planned consumption expenditure is $600
Q24: A movement along the consumption function shows
Q25: Q27: The relationship between disposable income and consumption Q28: The amount of consumption expenditure that takes Q29: Consumption expenditure exceeds disposable income Q30: As a household's disposable income increases, its Q31: As disposable income _ planned consumption expenditure
A) never.
B) when
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