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The Consumption Schedule in the Diagram Below Indicates That

Question 116

Multiple Choice

The consumption schedule in the diagram below indicates that: The consumption schedule in the diagram below indicates that: A) consumers will maximize their satisfaction where the consumption schedule and 45° line intersect. B) up to a point consumption exceeds income,but then falls below income. C) the MPC falls as income increases. D) households consume as much as they earn.


A) consumers will maximize their satisfaction where the consumption schedule and 45° line intersect.
B) up to a point consumption exceeds income,but then falls below income.
C) the MPC falls as income increases.
D) households consume as much as they earn.

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