Solved

Suppose an Economy's Consumption Schedule Shifts from C1 to C2

Question 102

Multiple Choice

  Suppose an economy's consumption schedule shifts from C1 to C2, as shown in the diagram. We can say that its A)  MPC has increased, but its APC at each income level is unchanged. B)  APC at each income level is increased, but its MPC is unchanged. C)  MPC and APC at each income level have both increased. D)  MPC and APC at each income level have both decreased. Suppose an economy's consumption schedule shifts from C1 to C2, as shown in the diagram. We can say that its


A) MPC has increased, but its APC at each income level is unchanged.
B) APC at each income level is increased, but its MPC is unchanged.
C) MPC and APC at each income level have both increased.
D) MPC and APC at each income level have both decreased.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions