Here is a consumption function: C = C0 + MPC(Yd). If MPC is 0.95, then we know that

A) as Yd rises by $1, Co rises by $0.95.
B) as Yd rises by $1, C rises by $0.95.
C) Yd rises by $0.95.
D) as C0 rises by $0.05, Yd rises by $1.

B

Economics

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The unemployment rate measures the percentage of

A) people who want full-time jobs, but can't find them. B) the working-age population who can't find a job. C) people in the labor force who can't find a job. D) the working-age population that can't find a full-time job. E) employed people who can't find a job.

Economics

The short-run aggregate supply curve shows a(n):

a. direct relationship between the expected price level and nominal GDP supplied. b. inverse relationship between the actual price level and real GDP supplied c. direct relationship between the actual price level and nominal GDP supplied. d. direct relationship between the actual price level and real GDP supplied. e. inverse relationship between the expected price level and real GDP supplied.

Economics