The figure given below shows the consumption functions of an economy.
Figure 9.4

-Refer to the Figure 9.4. If the economy is in equilibrium at A, which of the following is most likely to occur if consumers expect a period of rapid economic expansion?
A) Equilibrium will move from A to F.
B) Equilibrium will move from A to C.
C) There will be a new equilibrium disposable income at G.
D) Equilibrium will remain at A.
E) There will be a new equilibrium disposable income at E.

Question

The figure given below shows the consumption functions of an economy.
Figure 9.4
 
-Refer to the Figure 9.4. If the economy is in equilibrium at A, which of the following is most likely to occur if consumers expect a period of rapid economic expansion?
A) Equilibrium will move from A to F. 
B) Equilibrium will move from A to C. 
C) There will be a new equilibrium disposable income at G. 
D) Equilibrium will remain at A. 
E) There will be a new equilibrium disposable income at E.

Quizplus · Accepted Answer

The Answer of The figure given below shows the consumption functions of an economy.
Figure 9.4
 
-Refer to the Figure 9.4. If the economy is in equilibrium at A, which of the following is most likely to occur if consumers expect a period of rapid economic expansion?
A) Equilibrium will move from A to F. 
B) Equilibrium will move from A to C. 
C) There will be a new equilibrium disposable income at G. 
D) Equilibrium will remain at A. 
E) There will be a new equilibrium disposable income at E.

The Figure Given Below Shows the Consumption Functions of an Economy