Use Table 10.3,which shows the relationship between consumption and income.Assume the price level is constant. $\begin{array}{ll}
\text { Disposal Income } & \text { Total Consumption }& \text { Investment }& \text { Total Expenditure }\
\text { (Billions per Year) }& \text { (Billions per Year) }& \text {(Billions per Year) }& \text { (Billions per Year)}\\hline
\$ 0 & \$ 200 & \$ 100 &\_\_\_\
200 & 300 & 100&\_\_\_ \
400 & 400 & 100&\_\_\_ \
600 & 500 & 100&\_\_\_
\end{array}$

$\text { Table } 10.3$ In Table 10.3,which of the following remains constant as income changes?
A)The variable Y in the consumption function.
B)1 ÷ (1 - APC).
C)The APS.
D)The MPC.

Question

Use Table 10.3,which shows the relationship between consumption and income.Assume the price level is constant. $\begin{array}{ll}
\text { Disposal Income } & \text { Total Consumption }& \text { Investment }& \text { Total Expenditure }\
\text { (Billions per Year) }& \text { (Billions per Year)  }& \text {(Billions per Year) }& \text { (Billions per Year)}\\hline
\$ 0 & \$ 200 & \$ 100 &\_\_\_\
200 & 300 & 100&\_\_\_ \
400 & 400 & 100&\_\_\_ \
600 & 500 & 100&\_\_\_
\end{array}$

$\text { Table } 10.3$ In Table 10.3,which of the following remains constant as income changes?
A)The variable Y in the consumption function.
B)1 ÷ (1 - APC).
C)The APS.
D)The MPC.

Quizplus · Accepted Answer

The MPC (Marginal Propensity to Consume) remains constant as income changes, as it represents the change in consumption resulting from a change in income, and is typically assumed to be constant in basic economic models.

Use Table 10 Table 10.3\text { Table } 10.3 Table 10.3 In Table 10

Use Table 10 $\text { Table } 10.3$ In Table 10