The consumption schedule is such that Multiple Choice

Chemistry

1 answer:

Serga [27]3 years ago

8 0

Answer:

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.

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