A sudden decrease in consumers’ wealth-resulting, for example, from a stock market crash-would initially cause a(n)
A. downward movement along the consumption function.
B. downward shift of the consumption function.
C. upward movement along the consumption function.
D. upward shift of the consumption function.
Answer: B
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Which of the following would cause the equilibrium price of apple juice to decrease and the equilibrium quantity of apple juice to increase?
A) a decrease in the price of apples B) an increase in the price of orange juice, a substitute for apple juice C) an increase in the price of apples D) a decrease in the price of granola bars, a complement for apple juice
Given the expected rate of return on all possible investment opportunities in the economy:
A. an increase in the real rate of interest will reduce the level of investment. B. a decrease in the real rate of interest will reduce the level of investment. C. a change in the real interest rate will have no impact on the level of investment. D. an increase in the real interest rate will increase the level of investment.
Suppose your expenses for this term are as follows: tuition: $10,000, room and board: $6,000, books and other educational supplies: $1,000. Further, during the term, you can only work part-time and earn $8,000 instead of your full-time salary of $20,000
What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college? A) $11,000 B) $17,000 C) $23,000 D) $29,000
Ceteris paribus, how does a recession in the United States affect U.S. net exports?
What will be an ideal response?