If disposable income falls by $60 billion and consumption falls by $30 billion, then the slope of the consumption function is:
A)1.33.
B)0.5.
C)0.3.
D)0.75.

Name: If disposable income falls by $60 billion and consumption falls by $30 billion, then the slope of the consumption function is: A)1.33. B)0.5. C)0.3. D)0.75.
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Question

Quizplus · Accepted Answer

The slope of the consumption function is calculated as the change in consumption divided by the change in disposable income, which is $30 billion / $60 billion = 0.5.

If Disposable Income Falls by $60 Billion and Consumption Falls