A rise in the real interest rate ________ consumption expenditure and ________.
A) decreases; shifts the consumption function upward
B) decreases; results in a movement downward along the consumption function
C) increases; shifts the consumption function upward
D) increases; shifts the consumption function downward
E) decreases; shifts the consumption function downward
Correct Answer:
Verified
Q25: Q26: The AE curve illustrates the relationship between Q27: Which of the following is NOT included Q28: When disposable income is $8 trillion, consumption Q29: Induced expenditures are defined as that part Q31: When disposable income increases from $400 billion
A)
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