Consumption functions
Channel: econom
Date: 2015-11-24

Indicate which of the following factors might be a possible reason for the difference between the following two consumption functions:

C = 600 + 0.75YD

C = 500 + 0.75YD

a. A difference in the marginal propensity to consume
b. A difference in the savings behaviour of households
c. A difference in the wealth position of households
d. A difference in access to credit