If the Consumption Function Is Expressed as C = a

question 112

Multiple Choice

If the consumption function is expressed as C = a + mpc × YD,then "a" represents

• A)autonomous consumer expenditure.
• B)the marginal propensity to consume.
• C)the expenditure multiplier.
• D)disposable income.

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Definitions:

Dollar Sales

The total monetary value of sales transactions over a specified period, often used to measure business performance.

Break-Even

The stage where total income matches total expenses, leading to no profit or loss.

Monthly

Pertaining to or occurring once every month.

Unit Sales

The total number of individual items or products sold by a company in a specific period.