Along a Linear Consumption Function

question 330

Multiple Choice

Along a linear consumption function

• A) the average propensity to consume rises with a decrease 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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Definitions:

Culture

The shared beliefs, values, norms, and practices that characterize a group of people, shaping their behavior and understanding of the world.

Symbols

Visual, verbal, or written signs or objects that represent or stand for something else, often conveying ideas, concepts, or values.

Beliefs

Acceptance by the mind that something is true or real, often underpinned by an emotional or spiritual sense of certainty.

Norms

Established standards of behavior or guidelines that are considered normal within a group or society.