The consumption function and its components Ginny can expect to earn an annual I

Question

The consumption function and its components Ginny can expect to earn an annual Income of $5,000 under normal circumstances and $5,600 In the event that she gets a sales bonus. You can assume that Ginny does not pay taxes, so her total Income and disposable Income are the same. The following table shows Ginny's consumption at the two different income levels. Find the marginal propensity to consume (MPC) when Ginny's Income rises from $5,000 to $5,600: Ginny's consumption function can be represented with the following Which of the following statements are true of the variable a in Ginny's consumption function? Check all that apply. It represents the slope of Ginny's consumption function on a graph. It is equal to $1,700. It represents the amount of money Ginny would spend if her disposable income equaled zero. It represents Ginny's autonomous consumption spending.

Explanation / Answer

It represents the amount of money Ginny would spend if her disposable income equaled zero

It represents Ginny's autonomous consumption spending

Income Consumption MPC 5000 4600 - 5600 4960 0.60

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