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:

Specific Personal Jurisdiction

A legal term referring to a court's power to decide a lawsuit involving a defendant based on actions that took place within the territory of the court.

New York Convention

An international treaty facilitating the recognition and enforcement of foreign arbitral awards.

Hague Evidence Convention

The Hague Evidence Convention is an international treaty that provides procedures for the transmission of evidence across borders for use in legal proceedings.

Tariffs

Taxes or duties to be paid on a particular class of imports or exports, used by governments to regulate trade.