If the marginal propensity to consume increases, that will: Shift the consumption function downwards Lead to the consumption function becoming flatter Shift the consumption function upwards Lead to the consumption function becoming steeper
If the marginal propensity to consume increases, that will: Shift the consumption function downwards Lead to the consumption function becoming flatter Shift the consumption function upwards Lead to the consumption function becoming steeper
Chapter18: The Keynesian Model
Section: Chapter Questions
Problem 8SQ
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If the marginal propensity to consume increases, that will:
- Shift the consumption function downwards
- Lead to the consumption function becoming flatter
- Shift the consumption function upwards
- Lead to the consumption function becoming steeper
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