Consider a Consumption Function That Is Upward Sloping but Flatter

question 58

Multiple Choice

Consider a consumption function that is upward sloping but flatter than the 45-degree line.When real disposable income rises,

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

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Definitions:

Institutions

Established organizations or foundations, especially ones dedicated to education, public service, or culture run by a group of people.

Bass's Transactional Leadership

A leadership style identified by Bernard Bass that focuses on the exchange between leaders and followers, where leaders offer rewards for the followers' performance.

Transcend Self-Interest

The act of prioritizing the needs, goals, or well-being of others or the collective over personal gain.

Organization

An entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment.