(Figure: Consumption Functions) Use Figure: Consumption Functions. An economy's consumption function would shift from curve C to curve C when there is a(n):

A)increase in expected income
B)increase in expected income.
C)decrease in expected GDP growth estimates
D)decrease in expected GDP growth estimates.
E)drop in wealth
F)drop in wealth.
G)increase in the unemployment rate
H)increase in the unemployment rate.

Question

(Figure: Consumption Functions) Use Figure: Consumption Functions. An economy's consumption function would shift from curve C to curve C when there is a(n):

A)increase in expected income 
B)increase in expected income. 
C)decrease in expected GDP growth estimates 
D)decrease in expected GDP growth estimates. 
E)drop in wealth 
F)drop in wealth. 
G)increase in the unemployment rate 
H)increase in the unemployment rate.

Quizplus · Accepted Answer

The Answer of (Figure: Consumption Functions) Use Figure: Consumption Functions. An economy's consumption function would shift from curve C to curve C when there is a(n):

A)increase in expected income 
B)increase in expected income. 
C)decrease in expected GDP growth estimates 
D)decrease in expected GDP growth estimates. 
E)drop in wealth 
F)drop in wealth. 
G)increase in the unemployment rate 
H)increase in the unemployment rate.