Multiple Choice
Which of the following statements is true?
A) When a change in income causes consumption to change,the consumption-income line shifts;however,when anything besides income changes,we move along the line.
B) When a change in income causes consumption to change,we move along the consumption-income line;however,when anything besides income changes,the line shifts.
C) When income or anything else affecting consumption changes,we move along the consumption-income line.
D) When income or anything else affecting consumption changes,the consumption-income line shifts.
E) There is no way to determine,without more information,whether a change in income or anything else will shift the consumption line or cause movement along the consumption-income line.
Correct Answer:

Verified
Correct Answer:
Verified
Q46: In the short-run macro model,if firms produce
Q47: Equilibrium GDP is reached when<br>A) aggregate expenditure
Q48: If net exports decrease by $10 billion
Q49: Which of the following statements is accurate?<br>A)
Q50: If the expenditure multiplier is 10 and
Q52: The larger the multiplier,the more stable the
Q53: In the short run,<br>A) spending determines income,but
Q54: Which of the following changes would probably
Q55: If I = $2,000,G = $4,000,T =
Q56: An upward shift of the consumption function