Question

URGENT, only need the correct answer, no explanation or steps needed.

Don’t have much time till my exam. Just want to check if my choice is right or wrong.

The vertical intercept of the consumption function equals and the slope equals the unplanned component of consumption; the planned component of consumption autonomous consumption; the mpc the mpc; autonomous consumption the planned component of consumption; the unplanned component of consumption

Answer 1

option B is the correct answer.

For a keynes consumption function c=a+by; b which is the slope of the function is marginal propensity to consume,(mpc), as y axis is denoted by consumption , for a vertical intercept we take x axis that is income (y) to be 0. such that we get c=a as vertical intercept ; which is also called autonomous consumption.