Refer to the information provided in Figure 23.1 below to answer ...

[madam-professor]

Question 1

Refer to the information provided in Figure 23.1 below to answer the question(s) that follow.










Refer to Figure 23.1. A(n) ________ in the amount of ________ this household makes when this household's income is zero shifts the saving function downward.

◦ decrease; consumption
◦ decrease; spending
◦ increase; saving
◦ increase; consumption

Question 2

Refer to the information provided in Figure 23.1 below to answer the question(s) that follow.










Refer to Figure 23.1. A decrease in the 
MPS

◦ makes the consumption function flatter.
◦ makes the saving function flatter.
◦ shifts the consumption function upward.
◦ shifts the saving function downward.

[ecabral0]

Answer 1

increase; consumption

Answer 2

makes the saving function flatter.

[madam-professor]

Excellent

[ecabral0]

Great! Please up vote