Following Is Consumption Schedules for Three Private Closed Economies

question 100

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:

Monozygotic Twins

twins that result from the splitting of a single zygote (fertilized egg) and share nearly identical genetic material.

Inherited Traits

Characteristics or attributes passed down from parents to offspring through genes.

Activity Levels

Describes the overall amount of physical and mental action or engagement displayed by an individual.

Genotype

The genetic form, or constitution, of a person as determined by heredity.