Which of the Following Causes the Consumption Function to Rotate

question 185

Multiple Choice

Which of the following causes the consumption function to rotate downwards?

• A) a decrease in consumer tax rates
• B) a decrease in autonomous consumption
• C) a decrease in the marginal propensity to save (MPS)
• D) a decrease in the marginal propensity to consume (MPC)

---

Definitions:

Common Human Response

A general or typical reaction exhibited by people when presented with similar stimuli or situations.

William James

A philosopher and psychologist who is considered a founder of American psychology, known for his work on pragmatism and the psychology of religious experience.

Must Die

A statement reflecting the inevitable mortality of living beings, emphasizing the certainty of death for all.

Fertilization

The process in which a sperm cell unites with an egg cell, leading to the formation of a zygote and the initiation of pregnancy.