Which of the following will cause the consumption schedule to shift upward?
a) an increase in the amount of consumer indebtedness
b) a reduction in the wealth or assets held by consumers
c) an expectation in future declines in the consumer price index
d) an expectation of future shortages of essential consumer goods
e) a growing belief that personal income will decline in the future
Answer: d) an expectation of future shortages of essential consumer goods
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If the dollar depreciates against the yen, U.S. goods sold in ________ would become less expensive and Japanese goods sold in ________ would become more expensive
A) the United States; the United States B) Japan; Japan C) the United States; Japan D) Japan; the United States
A change in consumer preferences will shift the budget line.
Answer the following statement true (T) or false (F)
The more block prices a monopoly can set instead of setting a single price,
A) the smaller the deadweight loss. B) the more producer surplus. C) the larger the total welfare. D) All of the above.
The link between incentives and economic growth suggests a certain trade-off between equity and efficiency
Indicate whether the statement is true or false