A downward shift in the consumption function can be caused by:

A. expectations of higher inflation.
B. an increase in wealth.
C. a lower price level.
D. an increase in autonomous consumption.


Answer: A

Economics

You might also like to view...

Refer to Figure 24-2. Ceteris paribus, a decrease in the price level would be represented by a movement from

A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.

Economics

A perfectly competitive firm will shut down in the short run when marginal revenue equals marginal cost at a price less than minimum average variable cost

a. True b. False Indicate whether the statement is true or false

Economics

Which of the following is Walmart's competitive advantage in Mexico?

A) Walmart purchased all Mexican retail chains and eliminated competitors. B) Walmart is able to transfer its "everyday low prices" concept to Mexico. C) Walmart offers affordable, unique products for niche markets in Mexico. D) Customers prefer to buy from American companies instead of

Economics

The equilibrium price in a market is found where

A. The market demand curve intersects the y-axis. B. The market supply curve intersects the market demand curve. C. The market supply curve intersects the y-axis. D. The market supply curve intersects the x-axis.

Economics