Following Is Consumption Schedules for Three Private Closed Economies

question 5

Multiple Choice

Following is consumption schedules for three private closed economies.DI signifies disposable income and C represents consumption expenditures.All figures are in billions of dollars. Refer to the above data.Suppose that consumption increased by $2 billion at each level of DI in each of the three countries.We can conclude that the:

• A)marginal propensity to consume will remain unchanged in each of the three countries.
• B)marginal propensity to consume will decline in each of the three countries.
• C)average propensity to save will fall at each level of DI in each of the three countries.
• D)marginal propensity to save will rise in each of the three countries.