Refer to the Given Consumption Schedules

question 81

Multiple Choice

Refer to the given consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars. Suppose that consumption decreased
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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