Multiple Choice
The figure above shows three different consumption functions for a nation.
-Which of the following events could result in the consumption function shifting from CF₀ to CF₁?
A) an increase in disposable income
B) a decrease in disposable income
C) an increase in the real interest rate
D) a decrease in wealth
E) an increase in expected future income
Correct Answer:

Verified
Correct Answer:
Verified
Q79: The expenditure multiplier is typically<br>A) less than
Q81: <span class="ql-formula" data-value="\begin{array} { c c }
Q82: Which of the following situations lead firms
Q83: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1454/.jpg" alt=" -The figure above
Q85: The expenditure multiplier equals 5 and there
Q86: The multiplier effect<br>A) explains what causes a
Q87: The marginal propensity to consume is<br>A) another
Q88: If the MPC is 0.6 and there
Q89: Exports decrease by $500 billion, investment increases
Q375: At $10,000 of disposable income, Audrey's consumption