Multiple Choice
The consumption function is drawn on a graph with disposable income on the horizontal axis without including investment. Assume investment is autonomous and is added to the consumption function. The effect is:
A) an upward adjustment in the vertical intercept.
B) no change in the adjustment in the vertical intercept.
C) an increase in the slope of the consumption schedule.
D) a decrease in the slope of the planned expenditure schedule.
Correct Answer:
Verified
Correct Answer:
Verified
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