# f the MPC is constant, then the consumption function is a straight line. (a) True (b) False?

The marginal propensity to consume (MPC) ... because the consumption line is a straight line, ... MPC + MPS = 1. Marginal Propensity to Invest: ... - Read more

... the slope of the consumption function is the MPC. ... the MPC is less than the average propensity to ... Taylor, John B. (1986). "Consumption and ... - Read more

## f the MPC is constant, then the consumption function is a straight line. (a) True (b) False? resources

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True b. False 2. According to ... An upward shift of the consumption function ... Which of the following would shift the aggregate expenditure line upward ...

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For straight-line consumption and saving ... If saving is less than planned investment, ... Since b is the slope of the consumption function, ...

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For straight-line consumption ... If saving is less than planned investment, the ... Since b is the slope of the consumption function, it is ...

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Part B True/False/Uncertain Questions ... (planned investment plus unplanned changes in inventories) ... MPC = change in consumption ÷ change in ...

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... for the economy as a whole it holds true that: A) C=MPC+(A×YD). B) C=A+(MPC ... B) the aggregate consumption function ... aggregate spending line. B) ...

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The slope of the consumption function is the MPC. Because the slope of a line constant everywhere along the line, the MPC ... consumption function: C = a ...

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If the consumption function lies above the 45-degree line then ... the disposable income line lies below the consumption ... MPC. When disposal income ...

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6 The Keynesian Total Expenditures Model the amount of a product consumers are “willing and able to buy at various prices,” the consumption function ...

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Econ 102, Economics, Spring 2001, Midterm 2 ... TRUE/FALSE QUESTIONS 1. One ... holding everything else constant, will cause the consumption function with ...

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spend \$90 billion of the additional income on consumption, then the MPC is .90. ... consumption is a straight line, ... 1. true 6. B 2. false 7. A 3. D ...

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Economics 102, Spring 2000, Midterm 2 ... consumption = -25. b) MPC ... has a steeper slope than the aggregate expenditure (AE) line for an economy ...

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It will be a straight line with slope 0.8, since the MPC is ... This is the vertical intercept of the consumption function. ... AE = a 0 +MPC*[Y ...

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constant consumption function ... If the value of MPC is falling then the slope of consumption ... In panel B, line SS represents the saving function.

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... each of the following questions are true (T) or false (F ... curve was a straight line, ... A + B + C. E. E + F. 9. Which of the following statements ...

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♦ The slope of the consumption function equals the MPC. ... True/False and Explain Fixed ... they decrease their consumption expenditure. 7. b As people ...

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The Consumption Function ... (straight line) function: C = a + b(Y ... The MPC is also less than 1.

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b = autonomous consumption (expenditure) ... the mpc is the slope of the consumption function ... This is true because we have assumed that so many of ...

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The graph that relates hours of labor input to output is called the a. consumption function. b. ... TRUE/FALSE 1. ANS: T DIF: Easy TOP: 2. ANS: F ... MPC ...

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46 A downward shift in the consumption function ... NS C) KI = IM – X D) KI = X – IM E) B) and C) F) B) ... Disinflation B) Constant ...

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This is the slope of the consumption function MPC = C Y (1) ... if income decreases by \$1 then consumption ... We can draw a line on the consumption ...

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Consumption function/APC/MPC Saving function/APS ... schedule or line. B) . then A) consumption and saving ... MPC. Answer: False Type: F E: ...

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So the coefficient c in the consumption function is called the ... the net multiplier is then ... (80 per cent mpc). Consumption includes ...

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C = a + bYd What is the slope of the consumption function? b (b = mpc ... is true, then it must also be ... function 45 Degree Line Keynesian Model ...

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... schedule and the consumption function? 3. Now draw a line representing all the ... True, false or uncertain ... Fiscal Policy - Unit 3 - Homework Author:

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