When the consumption function ordinates MPT 0.2, MPS 0.3, MPI 0.5, and MPC 0.7 are plotted on a graph, what will their values reflect?
A. flatter consumption function due to low marginal propensity to tax
B. steeper consumption function due to low marginal propensity to save
C. flatter consumption function due to high marginal propensity to invest
D. steeper consumption function due to high marginal propensity to consume
Answer:D
When the consumption function ordinates MPT 0.2, MPS 0.3, MPI 0.5, and MPC 0.7 are plotted on a graph, what will their values reflect?
A. flatter consumption function due to low marginal propensity to tax B. steeper consumption function due to low marginal propensity to save C. flatter consumption function due to high marginal propensity to invest D. steeper consumption function due to high marginal propensity to consume
Explanation: Type: Multiple Choice