Use Table 10 $\text { Table } 10.3$ In Table 10

question 123

Multiple Choice

Use Table 10.3,which shows the relationship between consumption and income.Assume the price level is constant. $\begin{array}{ll}\text { Disposal Income } & \text { Total Consumption }& \text { Investment }& \text { Total Expenditure }\\\text { (Billions per Year) }& \text { (Billions per Year) }& \text {(Billions per Year) }& \text { (Billions per Year) }\\\hline\$ 0 & \$ 200 & \$ 100 &\_\_\_\\200 & 300 & 100&\_\_\_ \\400 & 400 & 100&\_\_\_ \\600 & 500 & 100&\_\_\_\end{array}$

$\text { Table } 10.3$ In Table 10.3,which of the following remains constant as income changes?

• A)The variable Y in the consumption function.
• B)1 ÷ (1 - APC).
• C)The APS.
• D)The MPC.

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