Refer to Figure a.If Π (the probability of state S)decreases,the x-intercept for the solid constant expected consumption line:
A) increases.
B) decreases.
C) does not change.
D) The answer cannot be determined without more information.

Question

Refer to Figure a.If Π (the probability of state S)decreases,the x-intercept for the solid constant expected consumption line: 
A) increases. 
B) decreases. 
C) does not change. 
D) The answer cannot be determined without more information.

Quizplus · Accepted Answer

The Answer of Refer to Figure a.If Π (the probability of state S)decreases,the x-intercept for the solid constant expected consumption line: 
A) increases. 
B) decreases. 
C) does not change. 
D) The answer cannot be determined without more information.

Refer to Figure A