Multiple Choice
Which of the following will cause a direct increase in consumption spending?
A) an increase in planned investment
B) an increase in government spending
C) an increase in disposable income
D) a decrease in net export spending
Correct Answer:

Verified
Correct Answer:
Verified
Q45: If aggregate expenditure is more than GDP,then
Q46: Higher interest rates increase both consumption and
Q47: Figure 12-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Figure 12-1
Q48: C = 2,550 + (MPC)Y<br>I = 800<br>G
Q49: Consumption spending is $5 million,planned investment spending
Q51: If the consumption function is defined as
Q52: The aggregate expenditure model focuses on the
Q53: An increase in the price level in
Q54: When Javier's income increases by $5,000,he spends
Q55: C = 3,600 + (MPC)Y<br>I = 1,200<br>G