Question A1a The Diagram Below Depicts A Consumption Function Of An Economy Where Is The Aggregate Consumption Spending 1 (15.57 KiB) Viewed 57 times
Question A1a The Diagram Below Depicts A Consumption Function Of An Economy Where Is The Aggregate Consumption Spending 2 (24.14 KiB) Viewed 57 times
Question A1a The diagram below depicts a consumption function of an economy, where is the aggregate consumption spending and is the current income of the economy Assume that households that are not credit-constrained would completely smooth their consumption cacoch uodun 02 003 spending, Fixed consumption Current income (output), Based on this information, which one of the following statements is correct?
сыненне нытие тойрч Based on this information, which one of the following statements is correct? A The marginal propensity to consume is the proportion of current income spent on consumption, C/Y B The marginal propensity to consume is given by the line's intercept on the vertical axis. С If the current income fails to zero, there will be zero consumption D The marginal propensity to consume is normally less than 1 as households are not able to smooth their consumption E The marginal propensity to consume in the above diagram is 0.6
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