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

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Definitions:

Callable Bond

A type of bond that gives the issuer the right to pay off the bond before its maturity date.

Debenture

A type of debt instrument that is not secured by physical assets or collateral.

Interest Rate

The fee a lender imposes on a borrower for the utilization of assets, represented as a proportion of the principal amount.

Large Banks

Financial institutions with a significant presence and assets, offering a wide range of financial services.