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

question 91

Multiple Choice

Here is a consumption function: C = C₀ + MPC(Y_d) .If MPC is 0.75,then we know that

• A)as Y_d rises by $1,Co rises by $0.75.
• B)as Y_d rises by $1,C rises by $0.75.
• C)Y_d rises by $0.75.
• D)as C₀ rises by $0.75,Y_d rises by $1.

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Definitions:

Glands

Organs in the body that secrete hormones or other substances directly into the blood or onto a surface within or out of the body.

Sensory Neurons

Nerve cells that transmit sensory information (sight, sound, touch, etc.) to the central nervous system.

Motor Neurons

Nerve cells forming part of the pathway along which impulses pass from the brain or spinal cord to a muscle or gland, facilitating movement and action.

Synaptic Neurons

Neurons that are capable of transmitting a nerve impulse across a synapse to a postsynaptic element, such as another nerve, muscle, or gland.