Refer to the given data. Suppose that consumption decreased by $2 billion at each level of DI in each of the three countries. We can conclude that the:





Answer the question on the basis of the following consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars.



A.  marginal propensity to consume will remain unchanged in each of the three countries.

B.  marginal propensity to consume will decline in each of the three countries.

C.  average propensity to save will fall at each level of DI in each of the three countries.

D.  marginal propensity to save will rise in each of the three countries.


A.  marginal propensity to consume will remain unchanged in each of the three countries.

Economics

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