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:

Traditional Square of Opposition

A diagram representing the relationships between four types of categorical propositions (A, E, I, O) and demonstrating how they contradict, contravene, or complement one another.

E Proposition

In traditional logic, a universal negative statement that asserts no members of a certain class belong to another class.

Nonstandard Quantifiers

Quantifiers that do not conform to the traditional logical structures, used to express quantities in an unconventional manner.

Standard Form

A recognized or conventional pattern of word order or arrangement used in formatting mathematical, logical, or philosophical expressions.