A Change in Interest Rates Would Shift the Consumption Schedule

question 100

Multiple Choice

A change in interest rates would shift the consumption schedule and the saving schedule ; a change in taxes would shift these two schedules _.

• A)in the same direction; also in the same direction
• B)in the same direction; in opposite directions
• C)in opposite directions; also in opposite directions
• D)in opposite directions; in the same direction

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Definitions:

Firm

A business organization, such as a corporation or partnership, that sells goods or services for profit.

Marginal Revenue

The enhanced earnings from selling an additional unit of a product or service.

Pure Competition

A market structure characterized by a large number of firms, all producing identical products, and no single firm has any influence over market price.

Extra Unit

The additional quantity of a product or service that is produced or provided.