Exhibit 8-7 Consumption function

In Exhibit 8-7, the shift from C to C' could be caused by a(n):
A) increase in disposable income.
B) expectation of inflation.
C) increase in interest rates.
D) increase in the level of saving.

Question

Exhibit 8-7 Consumption function
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In Exhibit 8-7, the shift from C to C' could be caused by a(n):
A) increase in disposable income. 
B) expectation of inflation. 
C) increase in interest rates. 
D) increase in the level of saving.

Quizplus · Accepted Answer

The Answer of Exhibit 8-7 Consumption function
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In Exhibit 8-7, the shift from C to C' could be caused by a(n):
A) increase in disposable income. 
B) expectation of inflation. 
C) increase in interest rates. 
D) increase in the level of saving.

Exhibit 8-7 Consumption Function