If Consumers' Expectations About Future Income Are Very Optimistic, Then

question 138

Multiple Choice

If consumers' expectations about future income are very optimistic, then we should expect

• A)the consumption function to shift downward.
• B)consumers to move up along the consumption function.
• C)the consumption function to shift upward.
• D)consumers to move down along the consumption function.

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Definitions:

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Response Variable

The primary variable of interest in a study or experiment that is measured to assess the effects of certain changes or differences in one or more explanatory variables.

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A set of statistical processes for estimating the relationships among variables, specifically one dependent variable and one or more independent variables.

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