If the consumption schedule is linear, then the
A) saving schedule will also be linear.
B) MPS will decline as income rises.
C) MPC will decline as income rises.
D) APC will be constant at all levels of income.

Question

Quizplus · Accepted Answer

The saving schedule is the mirror image of the consumption schedule. If the consumption schedule is linear, implying a constant marginal propensity to consume (MPC), then the saving schedule will also be linear, reflecting a constant marginal propensity to save (MPS).

If the Consumption Schedule Is Linear, Then the