Q.1.7 If the marginal propensity to consume increases: (2) (1) The slope of the consumption function will be steeper. (2) There will be a movement from left to right along the consumption function. (3) The consumption function will shift parallel upwards. (4) The consumption function will shift parallel downwards.
Q.1.7 If the marginal propensity to consume increases: (2) (1) The slope of the consumption function will be steeper. (2) There will be a movement from left to right along the consumption function. (3) The consumption function will shift parallel upwards. (4) The consumption function will shift parallel downwards.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy
Section: Chapter Questions
Problem 7QP
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Q.1.7 If the marginal propensity to consume increases: (2)
(1) The slope of the consumption function will be steeper.
(2) There will be a movement from left to right along the consumption function.
(3) The consumption function will shift parallel upwards.
(4) The consumption function will shift parallel downwards.
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