If the slope of a linear consumption schedule increases in a private closed economy, then it can be concluded that the
A) MPS has increased.
B) MPC has increased.
C) income has increased.
D) income has decreased.

Question

Quizplus · Accepted Answer

An increased slope of a linear consumption schedule indicates that for every additional unit of income, people are consuming more. This means that the MPC (marginal propensity to consume) has increased.

If the Slope of a Linear Consumption Schedule Increases in a Private