The slope of the consumption function
A) is negative.
B) equals the MPC.
C) is undefined below the 45- degree line.
D) is positive and equals 1 - MPC.

Name: The slope of the consumption function A) is negative. B) equals the MPC. C) is undefined below the 45- degree line. D) is positive and equals 1 - MPC.
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Question

Quizplus · Accepted Answer

The slope of the consumption function is equal to the marginal propensity to consume (MPC).

The Slope of the Consumption Function