Exhibit 8-14 Consumption function In Exhibit 8-14, which of the following could cause the shift from C1 to C2?
A) Higher interest rates.
B) An increase in disposable income.
C) A decrease in disposable income.
D) Lower tax rates.
E) Expectations of future economic growth.
Correct Answer:
Verified
Q210: Saving is disposable personal income not spent
Q211: Exhibit 8-13 Investment expenditures Q212: Exhibit 8-14 Consumption function Q213: Exhibit 8-15 Disposable income and consumption data Q214: Exhibit 8-15 Disposable income and consumption data Q216: Exhibit 8-15 Disposable income and consumption data Q217: If autonomous consumption is greater than zero Q218: In the Keynesian model, investment spending is Q219: The Keynesian theory focuses on aggregate supply, Q220: The consumption function has a positive slope.
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