An upward shift in the consumption function, other things being equal, could be caused by households:
A) becoming optimistic about the state of the economy.
B) becoming pessimistic about the state of the economy.
C) expecting future income and wealth to decline.
D) None of these.
Correct Answer:
Verified
Q119: The marginal propensity to save is:
A)the change
Q120: As shown in Exhibit 8-3, saving occurs:
A)at
Q121: Exhibit 8-4 Disposable income and consumption data
Q122: Exhibit 8-4 Disposable income and consumption data
Q123: Exhibit 8-4 Disposable income and consumption data
Q125: As shown in Exhibit 8-3, break-even income
Q126: As shown in Exhibit 8-3, dissaving occurs:
A)at
Q127: Exhibit 8-5 Consumption function Q128: A shift in the consumption function: Q129: Exhibit 8-4 Disposable income and consumption data
A)is based
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