Exhibit 11-1 Disposable income and consumption data Income (Y) Change in Disposable Income Consumption (C) 0 500
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Question:
Exhibit 11-1 Disposable income and consumption data
Income
(Y)
Change in
Disposable Income
Consumption
(C)
0
500
1,000
1,000
1,400
2,000
1,000
2,200
3,000
1,000
2,900
4,000
1,000
3,500
5,000
1,000
4,000
In Exhibit 11-1, when disposable income (Y) is increased from $0 to $1,000 to $2,000, the marginal propensity to consume:
is 1.decreases from 0.9 to 0.8.decreases from 0.8 to 0.7.increases from 0.8 to 0.9.is negative.
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