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The Figure Given Below Shows the Consumption Functions of an Economy

Question 4

Multiple Choice

The figure given below shows the consumption functions of an economy. Figure 9.4 The figure given below shows the consumption functions of an economy. Figure 9.4 Refer to Figure 9.4.Which of the following could explain a downward shift of the consumption function from C<sub>1</sub> <sub> </sub>to C<sub>3</sub>? A) An increase in household wealth B) A decrease in the proportion of young people in the population C) An increase in the size of the population D) A decrease in consumer confidence E) An autonomous decrease in saving Refer to Figure 9.4.Which of the following could explain a downward shift of the consumption function from C1 to C3?


A) An increase in household wealth
B) A decrease in the proportion of young people in the population
C) An increase in the size of the population
D) A decrease in consumer confidence
E) An autonomous decrease in saving

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