If the MPC Increases in Value, What Will Happen to the Slope

question 137

Multiple Choice

If the MPC increases in value, what will happen to the slope of the consumption function?

• A)The slope will decrease and the consumption function will become flatter.
• B)The slope will decrease and the consumption function will become steeper.
• C)The slope will increase and the consumption function will become steeper.
• D)The slope will increase and the consumption function will become flatter.

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Definitions:

Common Resource

A type of good that is rivalrous but non-excludable, meaning its use by one individual diminishes its availability for others, but no one can be effectively excluded from using it.

Overuse

Utilization of a resource or service to an extent that exceeds its sustainable capacity.

Nonrival

A property of certain goods where one person's consumption does not diminish the availability of the good for others.

Excludable

A property of a good or service wherein it is possible to prevent people who have not paid for it from having access to it.