Question

In equation c=a+by, the value of b lies between
a.0<b<1
b.0>b<1
c.0=b<1
d.0>b>1​

Answer 1

Answer:

Option C i think plz. Check

Answer 2

Concept:

The consumption function shows the positive relationship between the consumption and disposable income.

Given:

In equation c=a+by, the value of b lies between 0<b<1, 0>b<1, 0=b<1 and 0>b>1​.

To find:

In equation c=a+by, the value of b lies between is to find out.

Solution:

The consumption slope is known as the marginal propensity to consume. The marginal propensity to consume is the ratio of change in consumption to the change in disposable income. It is equal to b which lies between 0 to 1.