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

question 175

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.

---

Definitions:

Hard Disk

A data storage device used for storing and retrieving digital information using rapidly rotating disks coated with magnetic material.

Infrared

A technology utilizing infrared light that allows devices to communicate across a wireless network. Examples are laptop computers, printers, and handheld computing devices.

Communication Range

The maximum distance over which wireless communication can effectively take place between devices or within a network.

PaaS

Platform as a Service, a cloud computing model that provides customers a platform allowing them to develop, run, and manage applications without the complexity of building and maintaining the underlying infrastructure.