I. Autonomous consumption is always positiveII. Consumption is always positiveII. The marginal propensity to consume is always positiveIV. The marginal propensity to save is always positiveO All Statements are trueO Only Statements II and III are trueO Only Statements IIl and IV are trueO Only Statements I and III are trueAll Statements are false

Consumption function: C = c + MPC * Y Where C is consumption c is autonomous consumption, i.e., the…

Answered: I. Autonomous consumption is always…

I. Autonomous consumption is always positive II. Consumption is always positive III. The marginal propensity to consume is always positive IV. The marginal propensity to save is always positive

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 15E

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Question

I. Autonomous consumption is always positive
II. Consumption is always positive
II. The marginal propensity to consume is always positive
IV. The marginal propensity to save is always positive
O All Statements are true
O Only Statements II and III are true
O Only Statements IIl and IV are true
O Only Statements I and III are true
All Statements are false

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