The slope of the consumption function between two points on the graph is
A) the ratio of the change in consumption to the change in disposable income between those two points.
B) the ratio of the change in disposable income over the change in consumption between those two points.
C) equivalent to one plus the marginal propensity to save.
D) equivalent to the average propensity to consume.
E) equivalent to the average propensity to savE.
Correct Answer:
Verified
Q47: An increase in disposable income
A) increases consumption
Q48: As disposable income decreases,the
A) average propensity to
Q49: If disposable income increases,the average propensity to
Q50: If a family's marginal propensity to consume
Q51: The marginal propensity to consume (MPC)can be
Q53: When the consumption function is plotted on
Q54: If an increase in a household's disposable
Q55: As incomes go up,the
A) average propensity to
Q56: The fraction,or percentage,of disposable income that is
Q57: The average propensity to consume is consumption
A)
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