The consumption schedule is such that Multiple Choice

a. the MPC is constant and the APC declines as income rises.

b. the APC is constant and the MPC declines as income rises.

c. the MPC and the APC must be equal at all levels of income.

d. both the APC and the MPC increase as income rises.

Question

Chemistry

Wolfgang

6 September, 09:08

The consumption schedule is such that Multiple Choice

a. the MPC is constant and the APC declines as income rises.

b. the APC is constant and the MPC declines as income rises.

c. the MPC and the APC must be equal at all levels of income.

d. both the APC and the MPC increase as income rises.

+3

Answers (1)

Know the Answer?

Jonathan Bolton · Answer 1

a. the MPC is constant and the APC declines as income rises.

Explanation:

Hello,

At first, lets remember that the marginal propensity to consume (MPC) is a indicator that quantifies the induced consumption. It occurs with an increase in disposable income (income after taxes and transfers).

On the other hand, APC is the ratio of consumption to income as well as the proportion of income that is consumed.

In this manner, the consumption schedule is such that the MPC is constant and the APC declines as income rises, that is a. option.

Best regards.

The consumption schedule is such that Multiple Choicea. the MPC is constant and the APC declines as income rises.b. the APC is constant and the MPC declines as income rises.c. the MPC and the APC must be equal at all levels of income.d. both the APC and the MPC increase as income rises.

The consumption schedule is such that Multiple Choice

a. the MPC is constant and the APC declines as income rises.

b. the APC is constant and the MPC declines as income rises.

c. the MPC and the APC must be equal at all levels of income.

d. both the APC and the MPC increase as income rises.