Multiple Choice
The consumption schedule in the diagram below indicates that:
A) consumers will maximize their satisfaction where the consumption schedule and 45 line intersect.
B) up to a point consumption exceeds income, but then falls below income.
C) the MPC falls as income increases.
D) households consume as much as they earn.
Correct Answer:

Verified
Correct Answer:
Verified
Q16: If for some reason households become increasingly
Q18: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6686/.jpg" alt=" Refer to the
Q34: If the MPS is 1, the multiplier
Q116: If the marginal propensity to save is
Q120: The multiplier effect indicates that:<br>A)a decline in
Q152: The reverse wealth effect will tend to
Q165: The average propensity to consume indicates the:<br>A)amount
Q175: If the MPC is constant at various
Q181: The investment demand curve of an economy
Q190: The department of finance estimates that the