When a Family's Income Is Low and It Is Spending

question 352

Multiple Choice

When a family's income is low and it is spending more on consumption than it is receiving in income

• A) the APC must be increasing.
• B) the APC must be equal to the ratio of planned consumption expenditure to total saving.
• C) the MPC must be zero.
• D) some segment of the consumption function curve lies above the 45-degree line, indicating dissaving.

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