Which of the Following Increases the Slope of the Consumption

question 33

Multiple Choice

Which of the following increases the slope of the consumption function?

• A) an increase in the marginal propensity to consume
• B) a decrease in the value of consumer durables
• C) an increase in consumer confidence
• D) an increase in consumer wealth

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Definitions:

Sales Tax

A tax imposed by governments on the sale of goods and services.

Total Revenue

The entire amount of income generated by the sale of goods, services, or other financial assets before any deductions are made.

Culture of Poverty

A concept in social theory that suggests that poverty is not a result of individual inadequacies but is instead the outcome of a larger social and cultural atmosphere that perpetuates and sustains poverty.

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment.