The consumption schedule is drawn on the assumption that as income increases consumption will:
A)be unaffected.
B)increase absolutely, but remain constant as a percentage of income.
C)increase absolutely, but decline as a percentage of income.
D)increase both absolutely and as a percentage of income.
Answer:C
The consumption schedule is drawn on the assumption that as income increases consumption will:
A)be unaffected. B)increase absolutely, but remain constant as a percentage of income. C)increase absolutely, but decline as a percentage of income. D)increase both absolutely and as a percentage of income.