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Exhibit 11-1 Disposable Income and Consumption Data

Question 95

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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 decreases from 0.7 to 0.6. D) the marginal propensity to consume decreases from 0.8 to 0.7.
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 decreases from 0.7 to 0.6.
D) the marginal propensity to consume decreases from 0.8 to 0.7.

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