A consumption function:

intersects the vertical axis below zero.

intersects at the origin of the graph.

shows negative consumption when income is zero.

shows the level of consumption at each level of income.

The marginal propensity to consume (MPC) is best defined as:

The additional income that is consumed.

An increase in personal consumption.

An increase in personal income.

The change in income due to consumption.

If there is no additional consumption from a $1 increase in income, then:

the consumption function is upward sloping.

the consumption function is infinitely steep.

the consumption function is horizontal.

the consumption function is downward sloping.

\fFigure 71 C b 100 In Figure 7.1 all of the following is true cocept The slope of the consumption function is the change in consumption divided by the change in income From each additional dollar of income there is always the same additional consumption. Marginal propensity to consume Increases. O Corumation is an inamusing function of income