Which of the following factors would cause your consumption function to shift upward?
A. A decrease in the value of fixed-money assets
B. An increase in the value of your fixed-money assets
C. A decrease to your disposable income
D. An increase in the average price of goods and services
Answer: B
You might also like to view...
If you were going to go on a vacation to Italy, you would prefer
A. a strong dollar against the euro. B. a weak dollar against the euro. C. a strong euro against the dollar. D. a weak dollar against all currencies.
If the real interest rate rises, the quantity of investment demanded:
A. will fall. B. will not change. C. will rise. D. could rise or fall.
An individual holds $1,000 in a non-interest-earning checking account, and the overall price level rises significantly. Other things being constant, we would expect
A. the individual's real wealth to decrease and consumption to decline. B. no change in the individual's real wealth but a decline in real national product. C. the individual's stock of real wealth to decrease but real national income to increase. D. the individual's wealth to increase.
According to the ideas behind Rawlsian justice, income redistribution should maximize the well-being of the worst-off member of society.
Answer the following statement true (T) or false (F)