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.

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Definitions:

Break-Even Point

The financial point at which total costs and total revenues are equal, meaning there is no net loss or gain, and it is a critical measure for assessing the viability of a business or project.

Direct Costs

Expenses that are directly attributed to the production of goods or services, such as materials and labor.

Territory

An area or region designated for specific business activities or responsibilities, often defined for sales purposes.

Corporate Customers

Business entities or organizations that purchase goods or services for their operational needs, as opposed to individual consumers.