A consumption function of the form C = Co + c YD has a positive vertical intercept Co, which indicates that:
CA Foundation · Business Economics · MTP · January 2025
A consumption function of the form C = Co + c YD has a positive vertical intercept Co, which indicates that:
Suggested Answer and Working Notes:
Correct Answer: Option (A)
A. some consumption is unaffected by changes in disposable income
Topics: Determination of National Income
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