Multiple Choice
The consumption function is based on a number of assumptions.Given these assumptions,which of the following statements is true?
A) Below a certain level of income,APC > 1 and MPC < 0.
B) The MPC and APC are always less than unity.
C) As income rises,the MPC falls and the APC rises.
D) The MPC is greater than zero and less than one,and the APC falls as income rises.
E) The APC is greater than zero and less than one,and the MPC falls as income rises.
Correct Answer:
Verified
Correct Answer:
Verified
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