An increase in the income-dependent portion of the consumption function would correspond to a

A. Movement along the consumption function to the right.
B. Movement along the consumption function to the left.
C. Shift of the consumption function downward.
D. Shift of the consumption function upward.


Answer: A

Economics

You might also like to view...

What are the primary reasons for and against a policy of "too big to fail."

What will be an ideal response?

Economics

Assume that you want to invest in Thailand and therefore need to exchange U.S. dollars for Thai baht. You are at the bank and see that, depending on whether you use the bid or the ask rate, you have to pay either $10,000,000 or $11,000,000 to get a certain amount of baht. Which amount is correct?

a. It is not possible to tell without knowing which amount was calculated with which exchange rate. b. It is not possible to tell without knowing the bid and ask rate as well as the desired amount in baht. c. It has to be $10,000,000. d. It has to be $11,000,000. e. It could be either $10,000,000 or $11,000,000

Economics

Construction work is much riskier than working as a server at a restaurant. As a result, we'd expect a difference in wages between the two jobs. The difference is known as

a. an efficiency wage. b. a compensating differential. c. a wage adjustment. d. a minimum wage.

Economics

Which statement is true?

A. The government sector of GDP is larger than the consumption sector. B. The federal government spends about five percent of our GDP on interest on the debt. C. The federal government spends more on Social Security and Medicare (combined) than it does on defense. D. None of these statements are true.

Economics