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:

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