The consumption schedule is such that:
A)both the APC and the MPC increase as income rises.
B)the APC is constant and the MPC declines as income rises.
C)the MPC is constant and the APC declines as income rises.
D)the MPC and APC must be equal at all levels of income.
Answer:C
The consumption schedule is such that:
A)both the APC and the MPC increase as income rises. B)the APC is constant and the MPC declines as income rises. C)the MPC is constant and the APC declines as income rises. D)the MPC and APC must be equal at all levels of income.