Multiple Choice
The figure given below shows the consumption functions of an economy.
Figure 9.4
-Refer to the Figure 9.4. If the economy is in equilibrium at A, which of the following is most likely to occur if consumers expect a period of rapid economic expansion?
A) Equilibrium will move from A to F.
B) Equilibrium will move from A to C.
C) There will be a new equilibrium disposable income at G.
D) Equilibrium will remain at A.
E) There will be a new equilibrium disposable income at E.
Correct Answer:

Verified
Correct Answer:
Verified
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