The Figure Given Below Shows the Consumption Functions of an Economy.?Figure

Multiple Choice

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) The equilibrium will move from point A to point F.
B) The equilibrium will move from point A to point C.
C) There will be a new equilibrium disposable income at point G.
D) The equilibrium will remain at point A.
E) There will be a new equilibrium disposable income at point E.