Suppose the economy’s saving schedule shifts from S1 to S 2 as shown in the above diagram. We can say that its:
A)MPC has increased.
B)MPS has increased.
C)APS has increased at all levels of disposable income.
D)APS has decreased at all levels of disposable income.
Answer:B
Suppose the economy’s saving schedule shifts from S1 to S 2 as shown in the above diagram. We can say that its:
A)MPC has increased. B)MPS has increased. C)APS has increased at all levels of disposable income. D)APS has decreased at all levels of disposable income.