Multiple Choice
An upward shift of the consumption function might be caused by:
A) an increase in disposable income.
B) a decrease in disposable income.
C) a decrease in the price level.
D) a decrease in household wealth.
E) an increase in the interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
Q118: Suppose an increase in disposable income from
Q119: If the marginal propensity to save (MPS)is
Q120: Movement along the aggregate expenditure line is
Q121: Expectations that the price level will decrease
Q122: A decrease in the price level in
Q124: At the equilibrium level of real gross
Q125: The higher the opportunity cost of borrowing,the
Q126: The difference between consumption spending and disposable
Q127: The figure given below shows the income-expenditure
Q128: The aggregate expenditure line is drawn on