An increase in consumer spending based on an increase in income is reflected by
A) an upward rotation of the consumption function.
B) a downward shift in the consumption function.
C) a movement up along the consumption function.
D) an increase in the MPC.
C
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If a household has $40,000 in taxable income and its tax liability is $4,000, the household's average tax rate is
a. 10 percent. b. 25 percent. c. 40 percent. d. 50 percent
In the mobile device industry, an example of a platform firm is
A) a mobile apps developer. B) a developer of mobile device operation systems. C) a retailer of mobile device accessories. D) a provider of wifi networks.
Productive efficiency refers to
A. setting TR = TC. B. maximizing profits by producing where MR = MC. C. cost minimization, where P = minimum ATC. D. production at a level where P = MC.
Explain what money income is and why it is less inclusive than "economic income"
What will be an ideal response?