Figure 7.1
-In Figure 7.1 if the household moves from point I to point H 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 I to point H 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 I to point H means the household is spending more money (consuming more) but saving less. Therefore, the correct answer is B, saving less and consuming more.

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