Which of the following would be most likely to shift the consumption function downward?
A. A stock market crash
B. A price level decrease
C. Increased corporate profits
D. A stock market boom
Answer: A
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The tyranny of collateral ________
A) suggests that government tax rates are too high in the United States B) gives rise to the twin problems of moral hazard and adverse selection C) implies that when a poor person has a good idea they find it difficult to acquire financing D) attributes moral hazard to excessive government regulation
The multiplier is increased when income taxes are included
a. True b. False Indicate whether the statement is true or false
If the wage rate drops, an employer will be willing to hire more workers, ceteris paribus.
Answer the following statement true (T) or false (F)
In a closed economy, which of the following components of GDP is not included?
A) investment B) government spending C) net exports D) consumption