Figure 7.1
-In Figure 7.1 if the household moves from point H to point G on its budget, it would be:
A)saving and consuming more.
B)saving less and consuming more.
C)saving more and consuming less.
D)saving and consuming less.

Question

Figure 7.1 
-In Figure 7.1 if the household moves from point H to point G on its budget, it would be:
A)saving and consuming more. 
B)saving less and consuming more. 
C)saving more and consuming less. 
D)saving and consuming less.

Quizplus · Accepted Answer

Moving from point H to point G on the budget constraint means the household is consuming more while saving less. Therefore the correct answer is B.

Figure 7.1 -In Figure 7.1 If the Household Moves from Point H