If Autonomous Consumption (C_a) Increases, the Slope of the Consumption

question 51

True/False

If autonomous consumption (C_a) increases, the slope of the consumption function becomes steeper.

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Definitions:

Positive Statement

An objective statement that can be tested, amended, or rejected by referring to the available evidence.

Insurance Benefits

Insurance benefits are payments made by an insurance company to the insured or a designated beneficiary under the terms of an insurance policy.

Ceteris Paribus Assumption

A Latin term meaning "all other things being equal," used in economics to isolate the effect of one variable on another by holding all other relevant factors constant.

Comparative Economics

Comparative economics studies and contrasts the differences, advantages, and disadvantages of various economic systems, such as capitalism and socialism.