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

question 131

Multiple Choice

Here is a consumption function: C = C₀ + MPC(Y_d) .If MPC is 0.85,then we know that

• A) as Y_d rises by $1,Co rises by $0.85.
• B) as Y_d rises by $1,C rises by $0.85.
• C) Y_d rises by $0.85.
• D) as C₀ rises by $0.85,Y_d rises by $1.

---

Definitions:

Sulfuric Acid

A highly corrosive, dense, oily liquid acid, H2SO4, used in a variety of industrial processes like fertilizer production and in lead-acid batteries.

Pyridine

A basic heterocyclic organic compound with the chemical formula C5H5N, known for its distinctive, unpleasant smell.

2-Methyl-2-Butanamine

An organic compound with a tertiary amine and a methyl group on the second carbon of a butane chain.

Ammonia

A colorless gas with a pungent smell, composed of nitrogen and hydrogen (NH3), used in various industrial processes.