A Line on a Graph Will Shift If

question 70

Multiple Choice

A line on a graph will shift if

• A)the independent variable changes
• B)there are no changes in any variables considered in the model
• C)there is a change in a variable that had previously been assumed to be constant
• D)a change in the independent variable causes a change in the dependent variable
• E)the independent variable and the dependent variable are unrelated

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Definitions:

APC

The average propensity to consume, which is the fraction of total income that is spent on consumption as opposed to being saved.

Saving

The portion of income not spent on consumption, often set aside for future investments or expenditures.

Disposable Income

The amount of money individuals or households have available to spend or save after taxes have been accounted for.

Saving

The portion of income that is not spent on consumption but instead is set aside for future use or investment.