Refer to the Information Provided in Figure 23

question 85

Multiple Choice

Refer to the information provided in Figure 23.1 below to answer the question(s) that follow. Figure 23.1
-Refer to Figure 23.1. An increase in the MPC

• A) makes the consumption function flatter.
• B) makes the saving function flatter.
• C) shifts the consumption function upward.
• D) shifts the saving function downward.

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Definitions:

Consumer Market

A marketplace for goods and services that are purchased for personal, family, or household use.

Manufacturing Base

The sector of an economy that is involved in the production of goods in large quantities, utilizing labor and machines.

Trade Deficit

An economic measure where a country's importation of goods exceeds its exportation, reflecting a net outflow of domestic currency to foreign markets.

Merchandise Balance

The difference in value between a nation's imports and exports of tangible goods.