Which of the Following Will Most Likely Cause Movement Along

question 6

Multiple Choice

Which of the following will most likely cause movement along the consumption function?

• A)a change in disposable income 
• B)a change in interest rates 
• C)a change in tastes 
• D)a change in consumers' expectations

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Definitions:

Reserve Requirement

The minimum amount of reserves a bank must hold against deposits, as mandated by the central bank.

Money Supply

The complete portfolio of monetary assets at a fixed point in time within an economy, including cash, coins, and amounts in checking and savings accounts.

Deposits

Funds placed into banking institutions for safekeeping, which can earn interest over time depending on the type of account.

Federal Open Market Committee

The branch of the Federal Reserve System that determines the direction of monetary policy, including decisions on interest rates and the growth of the United States money supply.