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Which is a reason for a decrease in the average propensity

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Reference no: EM132821183

Problem 1: Which of the following is a reason for a decrease in the average propensity to consume with an increase in income?

A. the amount of savings decreases and the consumption of necessities increases

B. The expenditure on luxury goods increases and the amount of savings decrease

C. The cost of necessities represents only a small portion of income

D. The expenditure on luxury goods represents only a small portion

E. The amount of savings represents only a small portion of income

Reference no: EM132821183

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