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The Figure Given Below Shows the Consumption Functions of an Economy

Question 31

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The figure given below shows the consumption functions of an economy.
Figure 9.4
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.
-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.

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