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    Foundations of Macroeconomics Study Set 1
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    Exam 14: Aggregate Expenditure Multiplier
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    -The Figure Above Shows a Nation's Consumption Function
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-The Figure Above Shows a Nation's Consumption Function

Question 177

Question 177

Multiple Choice

  -The figure above shows a nation's consumption function.If disposable income is $2 trillion, then the MPC is ________ and saving is ________. A)  positive; positive B)  positive; negative C)  negative; positive D)  negative; negative E)  positive; zero
-The figure above shows a nation's consumption function.If disposable income is $2 trillion, then the MPC is ________ and saving is ________.


A) positive; positive
B) positive; negative
C) negative; positive
D) negative; negative
E) positive; zero

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