The Aggregate Consumption Function Is Based on the Assumption That

question 59

Multiple Choice

The aggregate 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)remains constant and desired saving will rise.
• D)and desired saving will both rise.
• E)remains constant and desired saving will fall.

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