Multiple Choice
When real consumption expenditure is plotted against real disposable income the resulting relationship is
A) very weak.
B) positive and very curvi-linear.
C) positive and very close to linear.
D) negative and very close to linear.
E) virtually flat
Correct Answer:

Verified
Correct Answer:
Verified
Q16: The largest component of aggregate expenditure is<br>A)
Q17: In the short-run macro model,firms that sell
Q18: If the interest rate increased,which of the
Q19: Suppose that after disposable income increases by
Q20: Which of the following is an equilibrium
Q22: From the perspective of the classical model,many
Q23: If net taxes are included in the
Q24: A movement along the consumption-function line would
Q25: If net taxes were lowered from $5,000
Q26: If real consumption spending increases by $400