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The Figure Given Below Represents the Consumption Function of a Country

Question 63

Multiple Choice

The figure given below represents the consumption function of a country.
Figure 9.3
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.
-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.

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