Economics 9708 · AS & A Level · National income statistics

National income statistics — practice question

The table presents an individual’s intended consumption at various income levels. What conclusion can be drawn about how the marginal propensity to consume (MPC) and average propensities to consume (APC) change as income increases?

  • AMPC: constant; APC: constant
  • BMPC: constant; APC: falling
  • CMPC: falling; APC: constant
  • DMPC: falling; APC: falling

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