Which of the Following Concerning the Marginal Propensity to Consume

question 85

Multiple Choice

Which of the following concerning the marginal propensity to consume and the consumption function is TRUE?
I. The larger the marginal propensity to consume, the greater the amount of autonomous consumption.
II. The larger the marginal propensity to consume, the steeper the consumption function.

• A) I is true.
• B) II is true.
• C) I and II are true.
• D) Neither I nor II is true.

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