Which of the Following Is True of Long-Run Consumption Functions

question 27

Multiple Choice

Which of the following is true of long-run consumption functions?

• A)Autonomous consumption is equal to zero in the long-run.
• B)The long run consumption functions are steeper than short run consumption functions.
• C)The marginal propensity to consume for the long run consumption function is almost equal to zero.
• D)The autonomous consumption is negative in long run consumption functions.
• E)The long run consumption function is represented by a straight line parallel to the horizontal axis.

---

Definitions:

Ethnic Group

A community or population made up of people who share a common cultural background, heritage, language, or lineage.

Latino Americans

Americans with cultural, historic, or ancestry ties to Latin America, including those from Central and South America, and the Caribbean.

Anglo Americans

People in the United States who are descendants of English settlers or identify culturally with England.

Asian Americans

Americans of Asian descent, representing a diverse group of cultures, languages, and backgrounds from the Asian continent.