Here Is a Consumption Function: C = C₀ + MPC(Y_d)

question 158

Multiple Choice

Here is a consumption function: C = C₀ + MPC(Y_d) .Which of the following is true about the consumption function?

• A) Consumption will rise if autonomous consumption or disposable income rise.
• B) Consumption will fall if autonomous consumption falls or if the MPC rises.
• C) Consumption will rise if autonomous consumption rises,MPC declines,or disposable income rises.
• D) For every $1 rise in autonomous consumption,consumption will also rise by $1.
• E) a and d

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Definitions:

Mainstream Sociology

The dominant, widely accepted approaches and methodologies in the field of sociology, which often focus on large-scale social structures and processes.

Ethnomethodologists

Social scientists who study the methods people use in everyday life to make sense of their social world, focusing on the implicit norms and routines.

Radical

Pertaining to fundamental or extreme changes or actions, often in politics or social reform.

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An ability to recognize one's own actions and thoughts self-critically as part of the context being analyzed or discussed.