If a household's disposable income increases from $12,000 to $22,000 and at the same time its consumption expenditure increases from $4,000 to $9,000, which of the following statements is correct?

Question

Answer

The slope of the consumption function is 0.6.

Answer

The slope of the consumption function is 0.5.

Answer

The household is dissaving.

Answer

The marginal propensity to consume over this range is negative.

Answer

The marginal propensity to save over this range is negative.

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If a household's disposable income increases from $12,000 to $22,000 and at the ...

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