Use the diagram below to answer the question If the marginal propensity to consume increases A. the consumption function will shift parallel upwards. B. there will be a movement from left to right along the consumption function. C. the consumption function will shift parallel downwards. D. the slope of the consumption function will be steeper.
Use the diagram below to answer the question If the marginal propensity to consume increases A. the consumption function will shift parallel upwards. B. there will be a movement from left to right along the consumption function. C. the consumption function will shift parallel downwards. D. the slope of the consumption function will be steeper.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
ChapterB: Indifference Curves
Section: Chapter Questions
Problem 9RQ: Exercise B9 Does a change in price both an income effect and a substitution effect? Does a change in...
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Use the diagram below to answer the question
If the marginal propensity to consume increases
A. the consumption function will shift parallel upwards.
B. there will be a movement from left to right along the consumption function.
C. the consumption function will shift parallel downwards.
D. the slope of the consumption function will be steeper.
![Stocks
Muty
ET
CONSUMPTION
P
de
D
INCOME
F₁1
Investing Essentials
Marginal Propensity
to Consume (MPC)
[märj-nəl pre-pen(t)-sə-të
tə kən-süm]
The proportion of an
aggregate raise in pay that
a consumer spends on the
consumption of goods and
services, as opposed to
saving it.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd4014c6d-908a-4885-bf9f-ca76f4760e76%2Fca04e3af-d856-4064-a43f-5f2f473e5a82%2Focv8u2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Stocks
Muty
ET
CONSUMPTION
P
de
D
INCOME
F₁1
Investing Essentials
Marginal Propensity
to Consume (MPC)
[märj-nəl pre-pen(t)-sə-të
tə kən-süm]
The proportion of an
aggregate raise in pay that
a consumer spends on the
consumption of goods and
services, as opposed to
saving it.
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