Question: I need help with household consumption A household consumption function is shown on the graph. Move the curve to the appropriate place to illustrate a

I need help with household consumption

I need help with household consumption A household consumption function is shown

A household consumption function is shown on the graph. Move the curve to the appropriate place to illustrate a decrease in the consumption function. Then, answer a question about the consequences of a decrease in the consumption function. Which statement is not a (general) consequence of a 200 decrease in the consumption function? Household consumer spending (in thousands of dollars) 180 Household consumption function This household will now need more income to achieve 160 a specific level of spending. 140 O This household now spends less for a given level of income. 120 The marginal propensity to save is unchanged. 100 O Unexpected changes in income will now result in a 80 smaller change in the level of consumption. 60 40 20 0 0 20 40 60 80 100 120 140 160 180 200 Household current disposable income (in thousands of dollars)

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