Consider a Consumption Function That Is Upward Sloping but Flatter

question 5

Multiple Choice

Consider a consumption function that is upward sloping but flatter than the 45- degree line. When real disposable income rises

• A)desired consumption will rise and saving will fall.
• B)desired consumption remains constant.
• C)desired consumption will fall and saving will rise.
• D)saving remains constant.
• E)desired consumption and saving will both rise.