Multiple Choice
The difference between consumption spending and disposable income _____.
A) decreases as income increases
B) stays proportionally the same as income increases
C) decreases if the interest rate increases
D) equals the amount of taxes paid
E) equals saving
Correct Answer:
Verified
Correct Answer:
Verified
Q121: Expectations that the price level will decrease
Q122: A decrease in the price level in
Q123: An upward shift of the consumption function
Q124: At the equilibrium level of real gross
Q125: The higher the opportunity cost of borrowing,the
Q127: The figure given below shows the income-expenditure
Q128: The aggregate expenditure line is drawn on
Q129: The slope of the consumption function equals
Q130: Which of the following is illustrated by
Q131: If a household's income falls from $20,000