A Downward Shift in the Consumption Function Can Be Caused

question 165

Multiple Choice

A downward shift in the consumption function can be caused by

• A) expectations of product shortages.
• B) expectations of more income in the future.
• C) a decrease in consumer confidence.
• D) rising property values that increases households' net worth.

---

Definitions:

Articles of Incorporation

Legal documents filed with a government body to legally document the creation of a corporation.

Par Value

The nominal or face value assigned to a share of stock or a bond by the corporation issuing it, important in legal and accounting contexts but not necessarily related to market value.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, making them more affordable to small investors.

Shares

Shares represent units of ownership interest in a corporation or financial asset, providing shareholders with a proportion of the company's profits and a claim on assets.