-In the Above Figure, a Change in Autonomous Consumption to $4

question 55

Multiple Choice

-In the above figure, a change in autonomous consumption to $4 billion with no change to the MPC
Would cause the consumption function to

• A)shift downward.
• B)shift upward.
• C)become steeper.
• D)become flatter.

---

Definitions:

Accrue

The accumulation or increase of something over time, especially payments or benefits.

Changes in Rent

Variations in the lease price for rental properties due to factors like market demand, location, and quality of the property.

Demand and Supply

The basic economic principle that describes the quantities of goods and services that buyers are willing and able to purchase at various prices and the quantities sellers are willing to sell.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital.