The Slope of the Consumption Function Is Equal to

question 131

Multiple Choice

The slope of the consumption function is equal to

• A)the change in consumption divided by the change in disposable income.
• B)the change in consumption divided by the change in personal income.
• C)the change in disposable income divided by the change in consumption.
• D)the change in national income divided by the change in consumption.

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Definitions:

Derived Demand

The demand for a factor of production or intermediate good that occurs as a result of the demand for another good or service.

Derived Demand

Demand for a factor of production or intermediate good that occurs as a result of the demand for another good or service.

Resource

An asset or input that is utilized in the production of goods and services, often categorized into natural, human, and capital resources.

MRP

Short for Marginal Revenue Product, it represents the additional revenue generated by employing one more unit of a factor, such as labor or capital.