The Vertical Intercept of the Consumption Function Equals ________ and the Slope

question 15

Multiple Choice

The vertical intercept of the consumption function equals ________ and the slope equals ________.

• A)the mpc; autonomous consumption
• B)autonomous consumption; the mpc
• C)the unplanned component of consumption; the planned component of consumption
• D)the planned component of consumption; the unplanned component of consumption

---

Definitions:

Aggregate Income

The total income earned by individuals and businesses in an economy over a specific period, before taxes.

Aggregate Income

The total amount of income earned by individuals and businesses within an economy.

Consumption Function

An economic equation that illustrates the connection between gross national income and total consumption levels.

Consumption Function

An economic formula representing the relationship between total consumption and gross national income, indicating how much households intend to consume at various income levels.