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An Increase in Expected Future Disposable Income ________ Consumption Expenditure

Question 235

Multiple Choice

An increase in expected future disposable income ________ consumption expenditure and ________.


A) increases; shifts the consumption function upward
B) decreases; shifts the consumption function downward
C) increases; shifts the consumption function downward
D) decreases; shifts the consumption function upward
E) increases; results in a movement upward along the consumption function

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