How is the slope of the curve in consumption function denoted?
Answer & explanation
Correct answer: option 4
C = c + bY. Here b is the slope of consumption curve which is known as MPC.
MPC + MPS = 1
MPC = 1 - MPS
How is the slope of the curve in consumption function denoted?
Correct answer: option 4
C = c + bY. Here b is the slope of consumption curve which is known as MPC.
MPC + MPS = 1
MPC = 1 - MPS