Suppose an Economy's Consumption Schedule Shifts from C₁to C₂as Shown

question 189

Multiple Choice

Suppose an economy's consumption schedule shifts from C₁to C₂as shown in the diagram below.We can say that its:

• A)MPC has increased but its APC at each income level is unchanged.
• B)APC at each income level is increased but its MPC is unchanged.
• C)MPC and APC at each income level have both increased.
• D)MPC and APC at each income level have both decreased.

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