Refer to the information provided in Figure 23.4 below to answer the question(s) that follow. Figure 23.4
-Refer to Figure 23.4. Which consumption function has the largest MPC?

Question

Refer to the information provided in Figure 23.4 below to answer the question(s) that follow.

Figure 23.4
-Refer to Figure 23.4. Which consumption function has the largest MPC?

Quizplus · Accepted Answer

The consumption function C₃ has the steepest slope, meaning it has the largest MPC (marginal propensity to consume). The higher the MPC, the larger the proportion of disposable income that is spent on consumption.

Refer to the Information Provided in Figure 23