Multiple Choice
Following is consumption schedules for three private closed economies.DI signifies disposable income and C represents consumption expenditures.All figures are in billions of dollars.
-Refer to the above data.Suppose that consumption increased by $2 billion at each level of DI in each of the three countries.We can conclude that the:
A) marginal propensity to consume will remain unchanged in each of the three countries.
B) marginal propensity to consume will decline in each of the three countries.
C) average propensity to save will fall at each level of DI in each of the three countries.
D) marginal propensity to save will rise in each of the three countries.
Correct Answer:

Verified
Correct Answer:
Verified
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