If the Consumption Function Shifts Downward, Which of the Following

question 76

Multiple Choice

If the consumption function shifts downward, which of the following is the most likely cause?

• A)Consumers become more optimistic.
• B)The price level increased.
• C)Consumers' incomes increase.
• D)Real interest rates decrease.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the open market.

Productivity

Productivity measures the efficiency of production in terms of the amount of goods and services produced per unit of labor, capital, or other inputs.

Total Output

The total amount of goods or services produced by a firm or country within a specific period.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource.