Author Question: Along a linear consumption function, A) the average propensity to consume rises with income, but ... (Read 98 times)

Mr.Thesaxman · **on:** Jun 30, 2018

Along a linear consumption function,

A) the average propensity to consume rises with income, but the marginal propensity to consume falls with an increase in income.
B) the marginal propensity to consume rises with an increase in income.
C) the average propensity to consume falls with an increase in income.
D) both the average propensity to consume and the marginal propensity to consume rise with an increase in income.

Question 2

Typical goals for fiscal policy are

A) running high deficits and raising consumer prices.
B) high prices for consumers and low prices for businesses.
C) high employment and price stability.
D) increasing the money supply so the government can spend more.