What happens to the consumption function when autonomous consumption decreases? OA. It shifts upward. B. It gets flatter. C. It gets steeper. OD. It shifts downward.
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- What is the vertical intercept of the consumpation function that represents the portion ofconsumption expenditure not associated with a level of disposable income?a. Consumption interceptb. Disposable income intercept c. Autonomous consumption d. Automatic consumption lineClearly explain the characteristics of the consumption function.If you practice consumption smoothing, O you always spend less than you earn. there will be times in your life when it makes sense to borrow. O you make sure your current consumption matches your current income. O you do not save for the future.
- What is the mariginal propensity to consume? Can the mariginal propensity to consume be grreater than 1? Explain.a) With the aid of a consumption function, highlight the main determinants of consumption.Assume that GDP increases by 1. Then consumption will.... Select one: a. ... increase by the marginal propensity to consume b. ... increase by 1 minus subsistence consumption C. ... increase by an unknown amount d. increase by 1
- What is the proponsity to consumption function? explain with formulae of average propensity to consume in micro economy.The consumption function is a straight-line relationship between consumption and income. True O FalseExplain the determinants of investment. Include in your answer an explanation of how a change in each determinant affects investment.