Multiple Choice
Which one of the following changes is consistent with a change in an economy's consumption function from C = $500 billion + 0.80Y to C = $700 billion + 0.80Y?
A) An increase in disposable income taxes.
B) An increase in interest rates
C) A decrease in permanent disposable income.
D) An increase in wealth.
Correct Answer:
Verified
Correct Answer:
Verified
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