106.If the marginal propensity to consumeis greater than zero but less than one, when disposable income rises by $1, consumption will:
107.If the consumption function is plotted on the vertical axis of a graph with disposable income on the horizontal axis:
108.The marginal propensity to consume equals:
109.If the marginal propensity to save decreases from 0.6 to 0.5:A)the slope of the consumption function increases from 0.4 to 0.5.B)the vertical axis intercept of the consumption function changes from 0.6 to 0.5.C)the slope of the consumption function decreases from 0.6 to 0.5.D)the horizontal axis intercept of the consumption function changes from 0.4 to 0.5.
110.Consider the simple economy of Behr, whose government does not tax its citizens. The consumption function of Behr is given by C= 500 + 0.80Y, where Yis income. The autonomous consumer spending in this economy is: