8. Assume that the size of the MPC falls. Conos mohon funchoat happens to the consumption...

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8. Assume that the size of the MPC falls. Conos mohon funchoat happens to the consumption function

business economics

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As can be seen in figure mpc is same at origin but less on C1 than on C2. C2 was initial consumption function but due to fall in mpc it shifted to C1. Note here we have using straight line consumption function to simplify things

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