Use the following consumption schedule to answer the next question. 
As income falls from level 3 to level 2, the amount of
A. consumption decreases and the amount of saving increases.
B. consumption decreases and the amount of saving decreases.
C. consumption increases and the amount of dissaving increases.
D. consumption decreases and the amount of dissaving decreases.
Answer: B
You might also like to view...
If there is an increase in expected future income, then
A) the aggregate demand curve shifts rightward. B) the aggregate demand curve shifts leftward. C) there is an upward movement along the aggregate demand curve. D) there is a downward movement along the aggregate demand curve. E) the aggregate demand curve becomes steeper.
Which of the following is not one of the three major credit bureaus in the U.S.?
a. Equifax b. Experian c. American Express d. Trans Union
Which of the following is FALSE?
a. Maximizing division profits always leads to maximizing company-wide profits b. Managers of profit centers are usually given a lot of discretion in their decision making c. Profit centers usually largely run themselves d. A manager being rewarded on division revenues has the most incentive to make good decisions for his division
In a perfectly competitive market, the horizontal sum of all the individual firms' supply curves is
a. zero. b. equal to the industry profits. c. the market supply curve. d. a horizontal line.