Refer to the information provided in Figure 8.4 below to answer the questions that follow. Figure 8.4
-Refer to Figure 8.4.The aggregate consumption functions C1 and C2
A)have the same MPC values.
B)imply different MPS values.
C)have the same autonomous consumption values.
D)have the same break-even values.

Question

Refer to the information provided in Figure 8.4 below to answer the questions that follow.  Figure 8.4
-Refer to Figure 8.4.The aggregate consumption functions C1 and C2
A)have the same MPC values. 
B)imply different MPS values. 
C)have the same autonomous consumption values. 
D)have the same break-even values.

Quizplus · Accepted Answer

The aggregate consumption functions C1 and C2 having the same MPC values means they have the same slope, indicating that the marginal propensity to consume is identical for both functions.

Refer to the Information Provided in Figure 8