Asked by
Jasmine Edwards
on Nov 11, 2024
Verified
A decrease in disposable income will:
A) shift the consumption function upward.
B) shift the consumption function downward.
C) cause an upward movement along the consumption function.
D) cause a downward movement along the consumption function.
E) make the consumption function flatter.
Disposable Income
The amount of money a household has available for spending and saving after income taxes have been accounted for.
Consumption Function
A macroeconomic concept that describes the relationship between total consumption and gross national income.
- Delve into the causes contributing to transformations in the consumption function.
Verified Answer
MD
Learning Objectives
- Delve into the causes contributing to transformations in the consumption function.