Consumption functions would shift downward if
a. disposable incomes fall.
b. disposable incomes rise.
c. price levels fall.
d. price levels rise.
d
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If banks choose to hold excess reserves
A. Lending decreases, and the money supply decreases. B. Lending increases, and the money supply increases. C. Lending decreases, and the money supply increases. D. None of these.
A minimum wage law is an example of a price floor
Indicate whether the statement is true or false
Which of the following suggests that the "laws" of supply and demand are being disobeyed?
a. outside forces disturbing an equilibrium b. persistent shortages or surpluses c. the market never moving from an equilibrium d. "other things" not always being equal
What are the policies usually advocated by supply side economists? How do they justify these proposals?