9- What could be the reason of shifting of consumption line upward from 1 to 3 as it is plotted in the Graph?C'= C+c Y.C,(Consumption)C= Co + c Yd(initial stage)23 Cl"= C + c Y4SaCoYd (Income)a)An increase in marginal propensity to consumeb)An increase in autonomous consumptionc)A decrease in autonomous consumptiond)A decrease in Incomee)An increase in Income

An increase within the level of consumption at each level of disposable income shifts the…

What could be the reason of shifting of consumption line upward from 1 to 3 as it is plotted in the Graph? C'E C'+c Y4 C, (Consumption) C= Co + c Yd (initial stage) 2 3 C"= C +c Ya Co Ja a Yd (Income)

What could be the reason of shifting of consumption line upward from 1 to 3 as it is plotted in the Graph? C'E C'+c Y4 C, (Consumption) C= Co + c Yd (initial stage) 2 3 C"= C +c Ya Co Ja a Yd (Income)

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Measuring The Cost Of Living

Section: Chapter Questions

Problem 3PA

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Question

9- What could be the reason of shifting of consumption line upward from 1 to 3 as it is plotted in the Graph?
C'= C+c Y.
C,(Consumption)
C= Co + c Yd
(initial stage)
2
3 Cl"= C + c Y4
Sa
Co
Yd (Income)
a)
An increase in marginal propensity to consume
b)
An increase in autonomous consumption
c)
A decrease in autonomous consumption
d)
A decrease in Income
e)
An increase in Income

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