Refer to the information provided in Figure 8.3 below to answer the questions that follow. Figure 8.3
-Refer to Figure 8.3. [60 + 0.7Y] is this society's
A) MPC.
B) MPS.
C) saving function.
D) consumption function.

Question

Refer to the information provided in Figure 8.3 below to answer the questions that follow.  Figure 8.3
-Refer to Figure 8.3. [60 + 0.7Y] is this society's
A) MPC. 
B) MPS. 
C) saving function. 
D) consumption function.

Quizplus · Accepted Answer

The expression [60 + 0.7Y] represents the amount of consumption at different levels of income (Y), where 60 is the autonomous consumption (consumption when income is zero) and 0.7Y is the part of consumption that varies with income. This makes it the society's consumption function.

Refer to the Information Provided in Figure 8