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Other Things Constant, an Increase in Households' Willingness to Save

Question 76

Multiple Choice

Other things constant, an increase in households' willingness to save more at every level of income will cause:


A) the consumption function to become flatter because the MPC rises.
B) the consumption function to make a downward parallel shift.
C) the consumption function to remain stationary but the saving function to shift upward.
D) the consumption function to become steeper because the MPC declines.

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