Economics · Consumption Function
If autonomous consumption increases while the marginal propensity to consume (MPC) remains constant, then:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The consumption function shifts upward in a parallel manner✓
- 2The slope of the consumption function increases
- 3The break-even point moves leftward
- 4The average propensity to consume (APC) becomes zero
Correct answer
The consumption function shifts upward in a parallel manner
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