The disposable income (DI) and consumption (C) schedules are for a private, closed economy. All figures are in billions of dollars. Refer to the data above. If consumption increases by $10 billion at each level of disposable income, the marginal propensity to consume will:
A) Change, but the average propensity to consume will not change
B) Change, and the average propensity to consume will change
C) Not change, but the average propensity to consume will change
D) Not change, and the average propensity to consume will not change

Question

The disposable income (DI) and consumption (C) schedules are for a private, closed economy. All figures are in billions of dollars.  Refer to the data above. If consumption increases by $10 billion at each level of disposable income, the marginal propensity to consume will:
A) Change, but the average propensity to consume will not change 
B) Change, and the average propensity to consume will change 
C) Not change, but the average propensity to consume will change 
D) Not change, and the average propensity to consume will not change

Quizplus · Accepted Answer

The Answer of The disposable income (DI) and consumption (C) schedules are for a private, closed economy. All figures are in billions of dollars.  Refer to the data above. If consumption increases by $10 billion at each level of disposable income, the marginal propensity to consume will:
A) Change, but the average propensity to consume will not change 
B) Change, and the average propensity to consume will change 
C) Not change, but the average propensity to consume will change 
D) Not change, and the average propensity to consume will not change

The Disposable Income (DI) and Consumption (C) Schedules Are for a Private