Suppose autonomous consumption increases. This increase in autonomous consumption will cause which of the following to occur?
A. The consumption function shifts up.
B. The consumption function becomes less steep.
C. The consumption function shifts down.
D. The consumption function becomes steeper.
Answer: A
You might also like to view...
In the context of the global economy, the United States' capacity utilization rate __________________ than it was just a few decades ago.
A. is much more important B. is much less important C. has the same importance
What is the total cost, at the level of production where Pastry Paradise is indifferent between which technology is used?
a. $1750 b. $1000 c. $1500 d. $2000
Which of the following is an example of a leakage into the circular flow of income and expenditure?
a. Saving b. Exports c. Government expenditure on goods d. Transfer payments e. Investment by firms
Refer to the above table. Suppose the price of B rises from $18 to $20. What is the cross price elasticity of demand between A and B?
A. +1 B. 0 C. -1 D. -2