Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The diagram illustrates a consumption function. When income rises, what happens to the average propensity to save and the marginal propensity to save?

  • Aaverage propensity to save: decreases; marginal propensity to save: decreases
  • Baverage propensity to save: decreases; marginal propensity to save: increases
  • Caverage propensity to save: increases; marginal propensity to save: decreases
  • Daverage propensity to save: increases; marginal propensity to save: increases

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI