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.

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Definitions:

Contrast

The state of being strikingly different from something else in juxtaposition or close association.

Compares and Contrasts

The act of identifying similarities and differences between two or more entities.

Contrast Paragraph

A section of writing that highlights differences between two or more subjects, ideas, or items.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive" finding in hypothesis testing.