Solved

Which of the Following Would Cause the Consumption Function to Shift

Question 189

Multiple Choice

Which of the following would cause the consumption function to shift downward?


A) A decrease in taxes
B) A decrease in interest rates
C) Consumers become more pessimistic about the future
D) Consumers become more optimistic about the future
E) None of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q21: When real consumption expenditure is plotted against

Q184: Which of the following statements is most

Q185: In calculating total spending,after adding together Consumption,Investment,and

Q186: The marginal propensity to consume (MPC)is<br>A) the

Q188: For any value of the MPC (marginal

Q190: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3972/.jpg" alt=" -Refer to Figure

Q191: In the short-run macro model,if aggregate expenditure

Q192: If the marginal propensity to consume is

Q193: If the marginal propensity to consume is

Q194: If aggregate expenditure at a particular level