Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

Households within an economy alter the way they consume, so the consumption curve moves from C1 to C2. What change has occurred to autonomous consumption and to the marginal propensity to consume?

  • Aautonomous consumption: decreased; marginal propensity to consume: decreased
  • Bautonomous consumption: decreased; marginal propensity to consume: increased
  • Cautonomous consumption: increased; marginal propensity to consume: decreased
  • Dautonomous consumption: increased; marginal propensity to consume: increased

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