Answer to Question #136018 in Macroeconomics for Bianca

Question

If the marginal propensity to consume increses:

1. The slope of the function will be steeper
2. There will be a movement from the left to the right along the consumption function.
3. The consumption function will shift parallel upwards
4. The consumption function will shift parallel downwards

Answer 1

1. The slope of the function will be steeper