An increase in the marginal propensity to consume will:
A. Lead to consumption function becoming steeper.
B. Shift the consumption function upwards.
C. Shift the consumption function downwards.
D. Shift savings function upwards.
Answer:A
An increase in the marginal propensity to consume will:
A. Lead to consumption function becoming steeper. B. Shift the consumption function upwards. C. Shift the consumption function downwards. D. Shift savings function upwards.