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Following Is Consumption Schedules for Three Private Closed Economies

Question 67

Multiple Choice

Following is consumption schedules for three private closed economies. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars. Refer to the data below. Suppose the consumption is increased by $2 billion in each of the three economies. This change could have been caused by: Following is consumption schedules for three private closed economies. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars. Refer to the data below. Suppose the consumption is increased by $2 billion in each of the three economies. This change could have been caused by: A) a decrease in consumer wealth. B) expectations of higher future income. C) an increase in taxation. D) an increase in saving.


A) a decrease in consumer wealth.
B) expectations of higher future income.
C) an increase in taxation.
D) an increase in saving.

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