The graph of the consumption function has consumption expenditure on the vertical axis and
A) the interest rate on the horizontal axis.
B) time on the horizontal axis.
C) disposable income on the horizontal axis.
D) the Consumer Price Index on the horizontal axis.
Correct Answer:
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Q20: If firms set prices and then keep
Q21: A movement along the consumption function is
Q22: As disposable income increases, consumption expenditures
A) increase
Q23: Q24: A movement along the consumption function to Q26: _ consumption is consumption that will occur Q27: Autonomous consumption is that portion of consumption Q28: An increase in expected future income Q29: Autonomous consumption Q30: There is a movement along the consumption
A) decreases
A) increases with income.
B) is independent
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