Refer to the given consumption schedules. DI signiﬁes disposable income and C represents consumption expenditures. All ﬁgures are in billions of dollars. Suppose that consumption decreased
By $2 billion at each level of DI in each of the three countries. We can conclude that the
A) marginal propensity to consume will remain unchanged in each of the three countries.
B) marginal propensity to consume will decline in each of the three countries.
C) average propensity to save will fall at each level of DI in each of the three countries.
D) marginal propensity to save will rise in each of the three countries.

Question

Refer to the given consumption schedules. DI signiﬁes disposable income and C represents consumption expenditures. All ﬁgures are in billions of dollars. Suppose that consumption decreased
By $2 billion at each level of DI in each of the three countries. We can conclude that the
A) marginal propensity to consume will remain unchanged in each of the three countries. 
B) marginal propensity to consume will decline in each of the three countries. 
C) average propensity to save will fall at each level of DI in each of the three countries. 
D) marginal propensity to save will rise in each of the three countries.

Quizplus · Accepted Answer

The Answer of  Refer to the given consumption schedules. DI signiﬁes disposable income and C represents consumption expenditures. All ﬁgures are in billions of dollars. Suppose that consumption decreased
By $2 billion at each level of DI in each of the three countries. We can conclude that the
A) marginal propensity to consume will remain unchanged in each of the three countries. 
B) marginal propensity to consume will decline in each of the three countries. 
C) average propensity to save will fall at each level of DI in each of the three countries. 
D) marginal propensity to save will rise in each of the three countries.

Refer to the Given Consumption Schedules