Multiple Choice
Answer the question on the basis of the following consumption schedules.DI signifies disposable income and C represents consumption expenditures.All figures are in billions of dollars. Refer to the given data.A $2 billion increase in consumption at each level of DI could be caused by:
A) a decrease in consumer wealth.
B) new expectations of higher future income.
C) an increase in taxation.
D) an increase in saving.
Correct Answer:

Verified
Correct Answer:
Verified
Q106: Answer the question on the basis of
Q107: Answer the question on the basis of
Q108: Which of the following will not tend
Q111: Which one of the following will cause
Q112: (Consider This)During the Great Recession of 2007-2009,both
Q116: The multiplier is defined as<br>A)1 − MPS.<br>B)change
Q127: The saving schedule is drawn on the
Q136: The consumption schedule shows<br>A)a direct relationship between
Q188: The multiplier is equal to the reciprocal
Q199: When consumption and saving are graphed relative