Multiple Choice
If the interest rate increases, then the:
A) economy will move to a new point along the existing consumption function.
B) consumption function will shift upward.
C) investment demand curve will shift downward.
D) investment demand curve will shift upward.
Correct Answer:
Verified
Correct Answer:
Verified
Q40: The marginal propensity to consume (MPC) is
Q41: Exhibit 8-10 Consumption function<br><br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX8793/.jpg" alt="Exhibit 8-10
Q42: Keynesian economics:<br>A) affirms the classical economists' basic
Q43: A lower interest rate makes more investment
Q44: Exhibit 8-8 Consumption function<br><br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX8793/.jpg" alt="Exhibit 8-8
Q46: Which one of the following will shift
Q47: When economists say that private investment is
Q48: If the interest rate increases, then the:<br>A)
Q49: If disposable income is $400 billion, consumption
Q50: If consumption spending is larger than disposable