MULTIPLE CHOICE Choose the one alternative that best completes the statement or

Question

MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question. 24) 24) C2 CO 0 Disposable Income Suppose an economy's consumption schedule shifts from Ci to C2 as shown in the diagram. We can say that its A) MPC has increased, but its APC at each income level is unchanged. B) APC at each income level is increased, but its MPC is unchanged. C) MPC and APC at each income level have both decreased. D) MPC and APC at each income level have both increased. ditures model of the economy, a downward shift in aggregate5

Explanation / Answer

Option D is correct

MPC (tangent to the consumption curve) and APC (slope of the consumption curve) at each income level have both increased.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.