An increase in the base consumption of a consumer results in a(n):
a. upward shift of the consumption function
b. downward shift of the consumption function.
c. upward rotation of the consumption function.
d. downward rotation of the consumption function.
a
You might also like to view...
If stock exchanges did not exist,
A. the risk to the investor of buying stocks would be much greater. B. the economy’s resources could be more efficiently allocated among firms. C. there would be no organized way for firms to issue stock. D. investment banks would no longer play a role in handling stocks.
The cross-price elasticity between a pair of complementary goods will be
A) positive. B) negative. C) zero. D) positive or zero depending upon the strength of the relationship.
At any given price level, which of the following fiscal policies will decrease real GDP demanded, other things constant?
a. Increase in fiscal spending on infrastructure b. Increase in net taxes c. Increase in transfer payments d. Increase in money supply
Sheila sells corn in a perfectly competitive market. This month Sheila receives a lower price for a bushel of corn than she did last month. This might have happened because:
A. the market demand increased for corn. B. the market demand decreased for corn. C. firms exited the market. D. Sheila's costs have increased.