If disposable income were to fall from 6,000 to 5,000,

A) induced consumption would fall.
B) induced consumption would stay the same.
C) induced consumption would rise.
D) there is not enough information to determine whether induced consumption would rise,fall or remain the same.

Question

Valeria Vasquez · Accepted Answer

Final Answer : A, Explanation :  Induced consumption refers to the amount of consumer spending that is determined by changes in disposable income. If disposable income falls, consumers will have less money to spend, so induced consumption will also fall.

If disposable income were to fall from 6,000 to 5,000,

A) induced consumption would fall.
B) induced consumption would stay the same.
C) induced consumption would rise.
D) there is not enough information to determine whether induced consumption would rise,fall or remain the same.

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Learning Objectives

Learning Objectives

Related questions

If disposable income were to fall from 6,000 to 5,000,A) induced consumption would fall.B) induced consumption would stay the same.C) induced consumption would rise.D) there is not enough information to determine whether induced consumption would rise,fall or remain the same.

Definitions

Learning Objectives

Learning Objectives

Related questions

If disposable income were to fall from 6,000 to 5,000,

A) induced consumption would fall.
B) induced consumption would stay the same.
C) induced consumption would rise.
D) there is not enough information to determine whether induced consumption would rise,fall or remain the same.