The Consumption Function Shifts Down If _____ Fall(s)

question 10

Multiple Choice

The consumption function shifts down if _____ fall(s) .

• A) taxes
• B) autonomous consumption
• C) government spending
• D) none of the above

Grasp the role and effects of foreign aid and microcredit on DVC development.

Understand the components and importance of a nation's infrastructure in its development.

Recognize the barriers to transferring technologies from IACs to DVCs.

Evaluate the concept of the vicious circle of poverty and strategies to overcome it.

---

Definitions:

Annual Inflation Rate

The percentage increase in the price of goods and services over a one-year period, reflecting the decreasing purchasing power of a currency.

Purchasing Power

The measure of what one unit of currency can buy in terms of goods or services.

Compounded Monthly

The practice of calculating interest on the principal and the accumulated interest each month.

Compounded Semiannually

Interest that is calculated and added to the principal balance twice a year.