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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