Which of the following would cause the consumption function to shift downward?
a. A decrease in taxes
b. A decrease in interest rates
c. Consumers become more pessimistic about the future
d. Consumers become more optimistic about the future
e. None of the above
C
You might also like to view...
What makes the demand for some goods elastic and the demand for other goods inelastic?
What will be an ideal response?
Refer to Figure 1-1. Using the information in the figure above, calculate the percentage change in sales of alcoholic beverages between 2013 and 2016
A) 23.1% B) 23.8% C) 30% D) 42.9%
Inventories are goods that can be considered as “purchased” by
A. the firms that produce them. B. the consumers that ultimately buy them. C. the government since they are tax deductible. D. no one since they are not counted as part of GDP.
How could Raymond’s late-night behavior create a negative externality for his roommates?
a. if he practices his clarinet and prevents them from sleeping b. if he stays quietly in his own room and does not come out c. if he cleans the apartment and does their laundry while they sleep d. if he goes online and pays their utility bills and rent for the month