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  3. the figure on the right displays a simplified consumption function...

Question: the figure on the right displays a simplified consumption function...

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The figure on the right displays a simplified consumption function. Which of the following expressions describes this function? OB, c = (co-*)Yo If consumption falls by $70 when disposable income falls by $100, the value of the parameter c response in decimai fom.) Suppose households hecomeless optimistic about the future All else constant, this attitude change will cause the oonsumption function to must beEnter your Slupe - O A. become steeper O B. shift downward. O C. becomo flatter. Dsposable Income, Yc D. shift upward.

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