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Consider a Consumption Function That Is Upward Sloping but Flatter

Question 58

Multiple Choice

Consider a consumption function that is upward sloping but flatter than the 45-degree line.When real disposable income rises,


A) desired consumption will fall and saving will rise.
B) desired consumption will rise and saving will fall.
C) desired consumption and saving will both rise.
D) desired consumption remains constant.
E) saving remains constant.

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