Refer to the information provided in Figure 23.2 below to answer ...

[cmoore54]

Question 1

Refer to the information provided in Figure 23.2 below to answer the question(s) that follow.










Refer to Figure 23.2. A decrease in Jerry's income is represented by

◦ an upward shift in Jerry's consumption function.
◦ a decrease in the slope of Jerry's consumption function.
◦ a movement from Point 
B to 
A.
◦ a movement from Point 
C to 
A.

Question 2

Refer to the information provided in Figure 23.2 below to answer the question(s) that follow.










Refer to Figure 23.2. Suppose Jerry's 
MPC decreases. At income 
Y
₁, Jerry's

◦ consumption will be greater than his income.
◦ consumption will be less than his income.
◦ saving will be zero.
◦ All of these

[chloejackso]

Answer 1

a movement from Point 
C to 
A.

Answer 2

consumption will be less than his income.

[cmoore54]

Thanks

[chloejackso]

Welcome