Question 9 is based on the following two diagrams. Diagram A Diagram B C C2 C7 C 1 C1 C1 C 1 C1 Co1 1 1 Co Co YD 0 YD 9. Which of the following statements is/are correct? a. Diagram A represents an increase in autonomous consumption. b. Diagram B represents an increase in the marginal propensity to consume. C. If the marginal propensity to save by households increases, the marginal propensity to consume will be lower. In other words, the slope of the C curve will be flatter. d. When comparing curve C1 with curve C2 in Diagram A, curve C2 shows an increase in the marginal propensity to consume. It implies that at each level of disposable income households spend a larger proportion of that disposable income on consumption. 1 . Only a 2. Only b 3. Only c 4. Only d 5 Only c and d