An increase in disposable income
A) increases consumption because it shifts the consumption function upward.
B) decreases consumption because it shifts the consumption function downward.
C) increases consumption by moving upward along a specific consumption function.
D) decreases consumption by moving downward along a specific consumption function.
E) does not change consumption.
Correct Answer:
Verified
Q42: Taxes less transfers refers to _ taxes
A)
Q43: If consumption increases and disposable income remains
Q44: If consumption decreases and disposable income stays
Q45: When the price of a financial or
Q46: Net taxes refers to taxes
A) plus transfers.
B)
Q48: As disposable income decreases,the
A) average propensity to
Q49: If disposable income increases,the average propensity to
Q50: If a family's marginal propensity to consume
Q51: The marginal propensity to consume (MPC)can be
Q52: The slope of the consumption function between
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