Economics 9708 · AS & A Level · Aggregate demand and aggregate supply

Aggregate demand and aggregate supply — practice question

The table presents the level of consumption at different levels of national income for a closed economy without government. What happens to the average and marginal propensities to consume as income rises?

  • Aaverage propensity to consume: constant; marginal propensity to consume: constant
  • Baverage propensity to consume: falls; marginal propensity to consume: constant
  • Caverage propensity to consume: falls; marginal propensity to consume: falls
  • Daverage propensity to consume: rises; marginal propensity to consume: falls

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