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Refer to the Above Figures with Consumption Schedules in Figure

Question 65

Multiple Choice

  Refer to the above figures with consumption schedules in figure (A)  and saving schedules in figure (B) , which correspond to each other across different levels of disposable income. If, in figure (A) , consumption increases along line A<sub>2</sub> then in figure (B)  there would be: A)  A shift from line B<sub>2</sub> to B<sub>3</sub> B)  A shift from line B<sub>2</sub> to B<sub>1</sub> C)  A movement down along line B<sub>2</sub> D)  A movement up along line B<sub>2</sub> Refer to the above figures with consumption schedules in figure (A) and saving schedules in figure (B) , which correspond to each other across different levels of disposable income. If, in figure (A) , consumption increases along line A2 then in figure (B) there would be:


A) A shift from line B2 to B3
B) A shift from line B2 to B1
C) A movement down along line B2
D) A movement up along line B2

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