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Exhibit 15-1 Disposable Income and Consumption Data

Question 9

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Exhibit 15-1 Disposable income and consumption data
Exhibit 15-1 Disposable income and consumption data -In Exhibit 15-1,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 15-1,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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