An Upward Shift in the Consumption Function Can Be Caused

question 22

Multiple Choice

An upward shift in the consumption function can be caused by

• A) expectations of product shortages.
• B) expectations of less income in the future.
• C) a decrease in consumer confidence.
• D) a reduction in the wealth of households.

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Definitions:

Currency Strengthens

Occurs when the value of a currency rises in comparison to one or more foreign currencies, increasing purchasing power abroad.

Domestically-Produced Products

Goods that are manufactured or cultivated within a country's borders, as opposed to being imported.

Stock Selection Return

The return generated from choosing specific stocks to outperform the market or a segment of the market.

Benchmark

A standard or point of reference against which the performance of a security, investment portfolio, or asset manager can be measured.