Multiple Choice
If the marginal propensity to consume were to increase with no change in the tax rate, then the consumption function drawn on a graph with disposable income on the horizontal axis would
A) rotate to a steeper line around the same intercept.
B) rotate to a steeper line and start at a higher intercept.
C) rotate to a steeper line but start from a lower intercept.
D) rotate to a flatter line around the same intercept.
E) shift to a parallel line starting from a higher intercept.
Correct Answer:

Verified
Correct Answer:
Verified
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