Multiple Choice
The figure given below represents the consumption function of a country.
Figure 9.3
-Refer to Figure 9.3. If the marginal propensity to consume is equal to 0.3, then:
A) autonomous consumption would decrease.
B) the total amount of dissaving would increase.
C) consumption spending would equal disposable income at an income level greater than $400.
D) consumption spending would equal disposable income at an income level less than $400.
E) consumption spending would equal disposable income at the same income level of $400.
Correct Answer:

Verified
Correct Answer:
Verified
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