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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Definitions:

Transpiration

The method through which water moves inside plants from the roots to tiny openings on the bottom of leaves, transforming into vapor before being emitted into the air.

Cohesion

The attraction between molecules of the same substance, which contributes to the integrity and stability of that substance.

Transpiration

The process by which moisture is carried through plants from roots to small pores on the underside of leaves, where it changes to vapor and is released to the atmosphere.

Hydrogen Bonds

These are weak bonds formed between a hydrogen atom in one molecule and an electronegative atom (usually oxygen or nitrogen) in another molecule.