The consumption function shows which of the following relationships in the economy?
a. The relation between consumption and saving, other things constant
b. The relation between consumption and income, other things constant
c. The relation between disposable income and taxes, other things constant
d. The relation between saving and expenditure, other things constant
b
You might also like to view...
Firms in a monopolistically competitive market will advertise because
A) they want to differentiate their products. B) they want to increase the elasticity of the demand curve. C) of the significant differences in their product over their competitors. D) the elasticity for their product is inelastic.
A decrease in demand is represented by
a. a shift outward of the entire demand curve. b. a shift inward of the entire demand curve. c. a movement along the demand curve in a southeasterly direction. d. a movement along the demand curve in a northwesterly direction.
Overseas investments by U.S. citizens show up in the U.S. balance of payments as
a. credit items. b. debit items. c. current account items. d. investment income.
A problem with third-party financing of so much of health care is that
A. it causes the demand for medical services to increase, which causes health care costs to increase. B. it reduces the quality of health care received by most people. C. it discourages physicians from getting second opinions and running enough tests to be sure the right procedure is followed. D. it discourages people from relying on the judgments of physicians in making decisions about health care.