If we graph the consumption function such that it cuts the vertical axis at a point above the origin, this is because we are assuming that
A) the MPC is positive.
B) the MPS is positive.
C) autonomous consumption is positive.
D) induced consumption is positive.
C
You might also like to view...
The substantial increase in clear property rights has severely impeded growth in many developing countries
Indicate whether the statement is true or false
A prediction of the Ricardo-Barro effect is
A) a larger decrease in the real interest rate when the government runs a budget surplus. B) no effect on the real interest rate when the government runs a budget deficit. C) a larger decrease in investment when the government runs a budget deficit. D) a larger increase in the real interest rate when the government runs a budget deficit. E) a larger decrease in investment when the government runs a budget surplus.
Joe Santos owns the only pizza parlor in a small town that is also home to a McDonald's, a Taco Bell, and a Kentucky Fried Chicken. Using a broad definition of a monopoly, Joe has a monopoly
Indicate whether the statement is true or false
Which of the following is a positive incentive?
A. deciding not to play golf due to rain B. making a donation to the Red Cross C. hiring 10 new workers as you decide to expand your operations D. offering a reward to anyone who finds your missing pet