When the consumption function becomes steeper,
A) the MPC rises.
B) the saving function also become steeper.
C) less of every dollar is consumed.
D) the MPC falls.

Name: When the consumption function becomes steeper, A) the MPC rises. B) the saving function also become steeper. C) less of every dollar is consumed. D) the MPC falls.
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Question

Quizplus · Accepted Answer

A steeper consumption function indicates a higher marginal propensity to consume (MPC), meaning a larger portion of additional income is spent on consumption.

When the Consumption Function Becomes Steeper