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.

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