Which of the following events could result in the consumption function shifting from CF0 to CF2?
A) an increase in disposable income
B) an increase in expected future income
C) a decrease in wealth
D) a decrease in the real interest rate
E) a decrease in disposable income
The figure above shows two aggregate expenditure lines.
C
You might also like to view...
How have government inefficiencies contributed to the creation of dead capital in the world's developing nations?
What will be an ideal response?
Bank capital can best be described as:
A) funds contributed by shareholder purchasers of a bank's stock plus the accumulated retaining earnings B) the accumulated amount of reserves held by a bank C) the location of most of the major banks of a country D) another name for bank assets
Which one of the following will shift the consumption function upward?
a. Higher interest rates. b. Expectations that the economy will grow in the future. c. A decrease in money holdings. d. Higher capacity utilization rates. e. A tax increase.
Exhibit 5-6 Demand curve for concert tickets
?
In Exhibit 5-6, the demand curve for concert tickets shown above between the prices of $20 and $30 is
A. inelastic. B. elastic. C. unitary elastic. D. cross elastic.