If the Marginal Propensity to Consume Is Unchanged and Autonomous

question 135

Multiple Choice

If the marginal propensity to consume is unchanged and autonomous consumption expenditures increase, then

• A) saving at every level of disposable income increases.
• B) the break-even disposable income decreases.
• C) the break-even disposable income increases.
• D) saving is unaffected.

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Definitions:

Suppliers

Businesses or individuals that provide goods or services to another business, often as part of a supply chain.

Franchise

A license to sell another’s products or to use another’s name in business, or both.