The figure above shows three different consumption functions for a nation.
-Which of the following events could result in the consumption function shifting from CF₀ to CF₂?
A) an increase in disposable income
B) a decrease in disposable income
C) a decrease in the real interest rate
D) a decrease in wealth
E) an increase in expected future income
Correct Answer:
Verified
Q241: Q242: The aggregate expenditure model predicts a business Q243: Q244: A change in the price level Q245: Exports decrease by $500 billion, investment increases Q247: Q248: A movement along the AE curve arises Q249: When the price level increases, aggregate planned Q250: Investment decreases by $300 billion, government expenditure Q251: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A) shifts
