An increase in the interest rate would shift the consumption function upward.
Correct Answer:
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Q1: If disposable income decreases,there is typically a
Q2: Disposable income is
A)the major determinant of consumption
Q3: If disposable income increases,consumption spending increases and
Q3: The difference between consumption spending and disposable
Q4: Saving in our simple model
A)varies inversely with
Q6: The primary determinant of saving is income.
Q7: Historically,consumption spending in the United States has
A)increased
Q8: Sarah moves from Upperland,which has no taxes
Q10: The most important determinant of a household's
Q123: If consumption is greater than income,saving must
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