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:

Communal Characteristic

Traits or qualities that are shared by a group, community, or culture, emphasizing the collective over the individual.

Sensitivity

The ability to perceive and respond to the needs and emotions of others, important in interpersonal relationships and leadership.

Negotiation Tactics

Strategies or methods used in the process of reaching an agreement between two or more parties, each with its own interests and objectives.

Social Costs

The negative effects or burdens that economic activities may impose on society, which are not directly reflected in market prices.