-According to the above figure, at an income level of Y1,
A) the economy saves an amount equal to BD.
B) the marginal propensity to save is falling.
C) the average propensity to save is greater than one.
D) the economy dissaves an amount equal to BD.
Correct Answer:
Verified
Q44: According to Keynes, an individual's level of
Q47: The life-cycle theory of consumption predicts that
Q58: Suppose that when disposable income decreases by
Q59: Which of the following is true?
A) MPC
Q64: In the graph for the consumption function,
Q65: Suppose real disposable income increases by $1,000.
Q66: The consumption function shows how much
A) households
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