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Consider a Consumption Function That Is Upward Sloping but Flatter

Question 5

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

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