Following Is Consumption Schedules for Three Private Closed Economies

question 130

Multiple Choice

Following is consumption schedules for three private closed economies.DI signifies disposable income and C represents consumption expenditures.All figures are in billions of dollars.Refer to the data below.Suppose the consumption is increased by $2 billion in each of the three economies.This change could have been caused by:

• A)a decrease in consumer wealth.
• B)expectations of higher future income.
• C)an increase in taxation.
• D)an increase in saving.

---

Definitions:

Kindergartners

Child within the age group that attends kindergarten, the educational setting for children prior to their entrance into first grade.

Empty Praise

Compliments or commendations without genuine backing or substance, which may not have a positive impact on the recipient.

Inflated Self-esteem

An excessively high regard for one's own self-worth or abilities, often without sufficient grounds or reality.

Deflated Self-esteem

A lowered sense of one's own value or worth.