The positive slope of the consumption function indicates that
A) consumers spend less out of each extra dollar of income.
B) the amount of household wealth is subject to change.
C) when prices fall consumers spend more.
D) consumers increase their total consumption expenditure when disposable income increases.
Correct Answer:
Verified
Q28: An increase in expected future income
A) decreases
Q29: Autonomous consumption
A) increases with income.
B) is independent
Q30: There is a movement along the consumption
Q31: Autonomous consumption is equal to
A) saving when
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