Given the consumption function C = $758 + 0.75 x Y, an increase in disposable income from $7,640 to $9,080 will cause consumption to increase by:

Group of answer choices

$360

$800

$1,080

$1,440

$7,568

Which of the following statements is true?

Group of answer choices

Changes in autonomous consumption will affect the slope of the consumption function.

The consumption function has a positive slope while the savings function has a negative slope.

Suppose that the consumption function crosses the 45-degree line at a disposable income level of $800. Assume further that saving equals $200 when disposable income is $1,300. This implies that the marginal propensity to consume must equal 0.4.

As disposable income increases, consumption spending will rise, but it will rise by less than disposable income if the marginal propensity to save is positive.

When disposable income is zero, consumption is also zero.

An increase in transfer payments or a decrease in taxes would ____ disposable income of households and thus ____ in consumption purchases.

Group of answer choices

increase; increase.

increase; decrease.

decrease; increase.

decrease; decrease.