The Figure Given Below Represents the Consumption Function of a Country

question 63

Multiple Choice

The figure given below represents the consumption function of a country.
Figure 9.3

-Refer to Figure 9.3. If the marginal propensity to consume is equal to 0.3, then:

• A) autonomous consumption would decrease.
• B) the total amount of dissaving would increase.
• C) consumption spending would equal disposable income at an income level greater than $400.
• D) consumption spending would equal disposable income at an income level less than $400.
• E) consumption spending would equal disposable income at the same income level of $400.

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Definitions:

Pyrosis

Another term for heartburn, a burning sensation in the chest caused by gastroesophageal reflux.

Acid Indigestion

A common condition of the stomach that results in a burning sensation or discomfort, often due to acidity or gastroesophageal reflux.

Dysphagia

Difficulty or discomfort in swallowing, often indicative of a disorder in the throat or esophagus.

Swallowing Medications

The act of ingesting drugs by mouth to achieve a therapeutic effect.