When drawn against current income, the slope of the Cd (r) + Id (r) + G curve is equal to the marginal
A) product of capital.
B) product of labour.
C) propensity to consume.
D) propensity to save.
E) benefit from investment.

Question

When drawn against current income, the slope of the Cd (r) + Id (r) + G  curve is equal to the marginal
A) product of capital.
B) product of labour.
C) propensity to consume.
D) propensity to save.
E) benefit from investment.

Quizplus · Accepted Answer

The slope of the Cd (r) + Id (r) + G curve with respect to current income represents the marginal propensity to consume, which indicates how much consumption changes with a change in income.

When Drawn Against Current Income, the Slope of the Cd