Consumption Spending Should Increase If

question 60

Multiple Choice

Consumption spending should increase if

• A) financial wealth decreases.
• B) reserve requirements decrease.
• C) interest rates increase.
• D) credit availability decreases.

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Definitions:

MR Curve

The Marginal Revenue curve represents the change in total revenue that results from selling one additional unit of a good or service.

Opportunity Costs

The value of the best alternative forgone when a decision is made to pursue a certain action.

MR

Marginal Revenue, the increase in revenue that results from selling one additional unit of a product.

Average Total Costs

The total cost of production divided by the quantity produced, representing the per-unit cost of production.