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Exhibit 11-1 Disposable Income and Consumption Data in Exhibit

Question 221

Multiple Choice

Exhibit 11-1 Disposable income and consumption data Exhibit 11-1 Disposable income and consumption data In Exhibit 11-1, when disposable income is increased from $2,000 to $3,000 to $4,000, A) total consumption increases by $1,000. B) the marginal propensity to consume remains constant. C) the marginal propensity to consume increases from 0.6 to 0.7. D) the marginal propensity to consume decreases from 0.8 to 0.7. E) the marginal propensity to consume decreases from 0.7 to 0.6. In Exhibit 11-1, when disposable income is increased from $2,000 to $3,000 to $4,000,


A) total consumption increases by $1,000.
B) the marginal propensity to consume remains constant.
C) the marginal propensity to consume increases from 0.6 to 0.7.
D) the marginal propensity to consume decreases from 0.8 to 0.7.
E) the marginal propensity to consume decreases from 0.7 to 0.6.

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