120 100 80 60 40 20 45° 20 40 60 Income (Billions) 80 100 120 Refer to the diagram. The consumption schedule indicates that 1) the optimum consumption where consumption schedule and 45° line intersect. 2) proportionally income increases as consumption increases. 3) consumption increases as income increases, but not as much. 4) both MPC and APC are increasing as income increases. Consumption (Bllions)

120 100 80 60 40 20 45° 20 40 60 Income (Billions) 80 100 120 Refer to the diagram. The consumption schedule indicates that 1) the optimum consumption where consumption schedule and 45° line intersect. 2) proportionally income increases as consumption increases. 3) consumption increases as income increases, but not as much. 4) both MPC and APC are increasing as income increases. Consumption (Bllions)

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 4.8P

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