Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The diagram illustrates how consumption expenditure is related to income. Which statement is correct?

  • AThe average propensity to consume is constant.
  • BThe average propensity to consume is rising.
  • CThe marginal propensity to consume is equal to the average propensity to consume.
  • DThe marginal propensity to consume is less than the average propensity to consume.

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