A shift in income distribution from wealthy individuals to poor individuals is likely to
A) increase consumer debt.
B) increase the national propensity to consume.
C) leave the national propensity to consume unchanged.
D) decrease the national propensity to consume.
Correct Answer:
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Q16: Keynes believed that consumer demand in the
Q17: At very low levels of income, consumer
Q18: The term, "dis-saving" means
A) having no respect
Q19: Those who currently have no savings and
Q20: The wealthy tend to have
A) higher average
Q22: In an economic expansion, the average ratio
Q23: What is the definition of the term,
Q24: Consumer debt as a percentage of national
Q25: What is the wealth effect?
A) the tendency
Q26: Assume that Sam has $2000 in savings
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