The Consumption Function Is Based on the Assumption That as Real

question 112

Multiple Choice

The consumption function is based on the assumption that as real disposable income rises,aggregate desired consumption

• A)will fall and desired saving will rise.
• B)will rise and desired saving will fall.
• C)and desired saving will both rise.
• D)remains constant and desired saving will rise.
• E)remains constant and desired saving will fall.

---

Definitions:

Money Supply

The total amount of money available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Government Control

The extent to which a government has authoritative influence or regulation over the activities within its jurisdiction.

Great Railroad Strike

A series of demonstrations, some violent, held nationwide in support of striking railroad workers in Martinsburg, West Virginia, who refused to work due to wage cuts.

Labor Unions

Labor Unions are organizations that represent the collective interests of workers in negotiations with employers regarding wages, benefits, workplace safety, and other employment terms.