-Explain the meaning of the consumption function depicted above. Why is this consumption function unrealistic?

Question

Quizplus · Accepted Answer

The Answer is This consumption function says that the level of consumption remains constant no matter what the level of income is. In other words, consumption is independent of the level of income, MPC = 0. In the real world we observe that households typically consume more as their income rises.

-Explain the Meaning of the Consumption Function Depicted Above