The consumption function states: A. As income falls, consumption rises, at the same pace B. As income rises, consumption rises, at the same pace C. As income rises, consumption rises, but not as quickly D. As income falls, consumptions falls, at the same pace
The consumption function states: A. As income falls, consumption rises, at the same pace B. As income rises, consumption rises, at the same pace C. As income rises, consumption rises, but not as quickly D. As income falls, consumptions falls, at the same pace
Chapter18: The Keynesian Model
Section: Chapter Questions
Problem 6SQ
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Question
The consumption function states:
A. |
As income falls, consumption rises, at the same pace
|
|
B. |
As income rises, consumption rises, at the same pace
|
|
C. |
As income rises, consumption rises, but not as quickly
|
|
D. |
As income falls, consumptions falls, at the same pace
|
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