Here is a consumption function: C = C0 + MPC(Yd) .If MPC is 0.95,then we know that
A) as Yd rises by $1,Co rises by $0.95.
B) as Yd rises by $1,C rises by $0.95.
C) Yd rises by $0.95.
D) as C0 rises by $0.05,Yd rises by $1.
Correct Answer:
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