Along the consumption function, an increase in disposable income will:
a. cause autonomous consumption to rise
b. shift the consumption function upward.
c. cause a corresponding downward shift of the saving function.
d. cause a movement along the given consumption function.
e. shift the consumption function downward.
d
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In the long run, the real interest rate is 3 percent, real GDP grows at 4 percent, velocity is constant, and the quantity of money grows at 6 percent. The nominal interest rate is
A) 3 percent. B) 10 percent. C) 5 percent. D) 6 percent. E) 4 percent.
Which demographic groups have the highest poverty rates?
What will be an ideal response?
A pattern in the coefficients of the time fixed effects binary variables may reveal the following in a study of the determinants of state unemployment rates using panel data:
A) macroeconomic effects, which affect all states equally in a given year. B) attitude differences towards unemployment between states. C) there is no economic information that can be retrieved from these coefficients. D) regional effects, which affect all states equally, as long as they are a member of that region.
Use the following table, which shows the aggregate demand and aggregate supply schedule for a hypothetical economy, to answer the next question.Real Domestic Output Demanded (in billions)Price Level (index value)Real Domestic Output Supplied (in billions)$3,000350$9,0004,0003008,0005,0002507,0006,0002006,0007,0001505,0008,0001004,000At the price level of 150, there will be a general ________.
A. shortage in the economy, and output demanded will increase as the price level falls B. surplus in the economy, and output supplied will increase as the price level rises C. surplus in the economy, and output supplied will decrease as the price level falls D. shortage in the economy, and output demanded will decrease as the price level rises