Which of the following events would produce an upward shift in the consumption function, other things being equal?
A. an increase in consumer wealth
B. a decrease in consumer wealth
C. a decrease in autonomous consumption
D. an increase in the interest rate
Answer: A
You might also like to view...
All of the following are true regarding a shareholder's diversified stock portfolio except which one?
A) The portfolio will contain stocks from a variety of companies. B) The portfolio will contain the stock of just one company. C) The diversified portfolio reduces the risk faced by the shareholders. D) The shareholder has balanced the risk of bad outcomes with positive outcomes.
Suppose the official unemployment rate is 10 percent. Which of the following is a definite conclusion to draw?
What will be an ideal response?
If tastes for foreign goods and services go up, then we would expect aggregate expenditure to:
A. remain constant. B. decrease. C. increase. D. increase and then sharply decrease more.
A pollution tax is:
A. a positive externality used to offset a negative one. B. a price per unit of discharge of pollution. C. a tax on pollution control equipment. D. itself a form of negative externality.