Along a Linear Consumption Function

question 16

Multiple Choice

Along a linear consumption function,

• A)the average propensity to consume falls with an increase in income.
• B)the marginal propensity to consume rises with an increase in income.
• C)the average propensity to consume rises with income, but the marginal propensity to consume falls with an increase in income.
• D)both the average propensity to consume and the marginal propensity to consume rise with an increase in income.

---

Definitions:

Independent Events

Two or more events in probability that have no effect on the likelihood of one another occurring.

Babies Born

A demographic measure referring to the number of live births occurring during a specific time period.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Proportion

An element or quantity evaluated in its connection to the total sum.