Do you eat up to the number of calories that MFP says you can to still lose weight? Example, if your calorie goal is 1200 and you burn 500 calories according to MFP, do you eat 1700 calories that day? Thanks.

I eat about half of the exercise calories. And I have my base rate set to "sedentary" even though I am not. I like it to start with 0 and only add the exercise in,

I do the same!

I don't usually eat my exercise calories, although occasionally I do.

I don't eat them back.

I try not to eat my exercise calories, but know they're there in case I need another evening snack, etc.

I eat my exercise calories. Even if I do, MFP is still accounting for a 500 calorie deficit, so if I push that to nearly twice that amount, I usually feel weak and tired. My count is already low, so I try not to make it much lower.
Also, I still see progress the same way! There's much more benefits to exercising than an extra calorie deficit (: