Use the Following to Answer Questions

question 111

Multiple Choice

Use the following to answer questions .
Exhibit: Consumption Functions
Figure 13-3
-(Exhibit: Consumption Functions) Upward shifts of the consumption function, for example from C₀ to C₁ to C₂ demonstrate

• A) an increase in the marginal propensity to save.
• B) increases in the amount of consumption for a given level of disposable income.
• C) increases in the amount of disposable income available for consumption.
• D) a decrease in the marginal propensity to save.

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Definitions:

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