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If Consumption Expenditures Are Positively Related to Non- Labor Income

Question 372

Multiple Choice

If consumption expenditures are positively related to non- labor income, then if non- labor income were higher than that corresponding to the function in the above figure,


A) consumption expenditures would be the same at any level of labor income as that depicted above.
B) consumption expenditure would be higher at any level of labor income than depicted above.
C) consumption expenditure would be lower at any level of labor income than depicted above.
D) We cannot say how the function depicted above would be affected.

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