When the Consumption Function Becomes Steeper

question 205

Multiple Choice

When the consumption function becomes steeper,

• A) the MPC rises.
• B) the saving function also become steeper.
• C) less of every dollar is consumed.
• D) the MPC falls.

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Definitions:

Breakfast Department

A specific business unit within a hospitality organization that is responsible for managing and operating the breakfast service.

Cost Center

is a segment of a business that does not directly generate revenue but incurs costs, like a human resources department.

Generates Revenues

The process through which a business earns income from its normal operations, typically through the sale of goods and services.

Profit Center

A unit or department that incurs costs and generates revenues.