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Refer to Figure A

Question 31

Multiple Choice

Refer to Figure a.If Π (the probability of state S) decreases,the x-intercept for the solid constant expected consumption line: Refer to Figure a.If Π (the probability of state S) decreases,the x-intercept for the solid constant expected consumption line:   A)  increases. B)  decreases. C)  does not change. D)  The answer cannot be determined without more information.


A) increases.
B) decreases.
C) does not change.
D) The answer cannot be determined without more information.

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