When planned expenditure is drawn on a graph as a function of income, the slope of the line is:
A)between minus one and zero.
B)between zero and one.
C)one.
D)greater than one.

Question

Quizplus · Accepted Answer

The slope of the planned expenditure line, which represents the marginal propensity to consume, is typically between zero and one, indicating that as income increases, consumption increases but at a decreasing rate.

When Planned Expenditure Is Drawn on a Graph as a Function