EOC marcoeconomic question

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Hmm, both consumption and saving will go up with extra income. Also MPS+MPC=1.

But I believe that consumption expenditures increases at a higher rate than savings given an increase in wealth, this is why the most likely result from increased household weath is an increase in consumption expenditures.

You can only choose one answer! smiley

Bigger doesn’t mean more likely.

But an increase in consumption is more likely to happen than an increase in saving with an increase in wealth. indecision

I wasn’t questioning your conclusion; I was merely questioning your justification for that conclusion.

okok, wink

What’s your justification Magician?

Asians is more likely to save money :slight_smile: