The Slope of the Consumption Function Equals _______ While the Slope

question 110

Multiple Choice

The slope of the consumption function equals _______ while the slope of the 45 degree line equals _______.

• A) one; zero
• B) the MPC; zero
• C) the MPC; one.
• D) MPS; MPC

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Definitions:

Presuppositions

Implicit assumptions or beliefs that are taken for granted in communication or reasoning.

Innate Ideas

Ideas that we are born with, which may include tendencies to think in certain ways that are hardwired into our minds.

Empirical Ideas

Concepts or thoughts derived from or verified by observation, experience, or experiment as opposed to theory or pure logic.

Indubitable

Not susceptible to being doubted.