Here is a consumption function: C = C0 + MPC(Yd). If MPC is 0.80, then we know that

A) as Yd rises by $1, Co rises by $0.80.
B) as Yd rises by $1, C rises by $0.80.
C) Yd rises by $0.80.
D) as C0 rises by $0.80, Yd rises by $1.

B

Economics

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