Multiple Choice
Expectations that the price level will decrease in the future will _____.
A) make the current consumption function flatter
B) shift the current consumption function downward
C) result in an upward movement along the current consumption function
D) result in a downward movement along the current consumption function
E) make the current consumption function steeper
Correct Answer:
Verified
Correct Answer:
Verified
Q116: Which of the following will shift the
Q117: The fraction of an increase in income
Q118: Suppose an increase in disposable income from
Q119: If the marginal propensity to save (MPS)is
Q120: Movement along the aggregate expenditure line is
Q122: A decrease in the price level in
Q123: An upward shift of the consumption function
Q124: At the equilibrium level of real gross
Q125: The higher the opportunity cost of borrowing,the
Q126: The difference between consumption spending and disposable