Multiple Choice
Which one of the following statements about household consumption and saving is false?
A) The slope of the consumption function is the marginal propensity to consume.
B) Both the marginal propensity to consume and the marginal propensity to save are positive but less than one.
C) The marginal propensity to consume becomes negative when aggregate consumption exceeds aggregate income.
D) The slope of the savings function is the marginal propensity to save.
Correct Answer:
Verified
Correct Answer:
Verified
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