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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